(Source: Datamonitor)
Hard disk drive manufacturer Seagate Technology has announced plans to cut approximately 1,100 jobs globally as part of a restructuring program to position the company to be cash flow and earnings positive within its fiscal year 2010. This is in addition to an announcement in January when it said it would cut approximately 2,950 jobs globally and reduce salaries.
This was followed in March by the announcement of plans to lay off five senior vice-presidents and 17 vice-presidents in response to the decline in demand for personal computers and servers. It also said Brian Dexheimer, division president, had left the company, and his responsibilities would be assumed by other managers in the company.
Seagate said the restructuring will be completed by the end of July 2009 and is expected to generate annual savings of approximately $125m with the reduction of overheads, marketing, and product-development costs to below $300m a quarter. It said it expects to incur pretax charges of approximately $72m related to the restructuring.
Last month it reported a net loss of $273m for the third quarter 2009, against net income of $344m in the third quarter 2008, on revenue down 31% at $2.15 billion.
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