Drive maker expects to save $125 million annually with the cuts
Following layoffs and salary reductions unveiled earlier this year, Seagate now plans an additional 1,100 layoffs to bolster its cash flow and get earnings back in the black.
As part of ongoing efforts to save money that include staff and operating cost reductions, Seagate Technology today announced a restructuring plan that will mean cutting an additional 1,100 workers. That amounts to about 2.5% of the company’s global workforce.
The hard disk drive manufacturer said the reduction will increase cash flow and should get earnings back in the black in fiscal year 2010.
Slideshow: Most notable layoffs of 2009
In its most recent quarter, Seagate reported a net loss of $273 million on $2.1 billion of revenue. That followed a $496 million net loss during the previous quarter. Including today’s layoffs, the company has reduced its global head count through attrition and restructuring by more than 25% this year. Seagate said it expects the restructuring plan to be mostly complete by the end of July, saving it about $125 million per year.
Earlier this year, Seagate announced the closure of two recording media facilities and its Pittsburgh research facility along with company-wide salary reductions.
The company also said it would continue to “assess options to further reduce manufacturing operating costs” in the months ahead.
