Seagate Technology Plans to Cut 1,600 Jobs Amid PC Slumpby
Seagate Technology Plc, a maker of disk drives for computers, said it’s cutting about 3 percent of its workforce in an effort to reduce costs amid a slump in demand for PCs.
The company said it expects to complete the job cuts by the end of this year’s September quarter and predicted pretax charges of $62 million related to the action. Savings will be about $100 million per year from a reduction of 1,600 employees, the company said in a regulatory filing.
PC components makers are suffering the biggest decline in demand for the devices since the industry was born in the early 1980s. Worsening the impact, Seagate’s spinning magnetic disk technology is being replaced by storage based on semiconductors, a technology it doesn’t have.
Shares of the Cupertino, California-based company have dropped 35 percent this year. They gained 1.4 percent to $23.95 at the close in New York trading before the announcement.