Seagate wants to save 125 million USD by cutting 1,100 jobs
Hard drive specialist Seagate has to reduce costs: 1,100 employees will be delayed during the reorganization. The company wants to save 125 million USD that way.
On May 13 Seagate Technology announced that the company will be restructured and that the workforce will be reduced by 1,100 employees. The reorganization is supposed to be finished until July 2009 and cost 73 million US Dollars. Laying off the announced amount of workers would match a reduction of the Seagate staff by about 2.5 percent. The target is to save 125 million US Dollars.
In January 800 employees had to leave Seagate already. In April the company closed the research center in Pittsburgh and announced salary cuts. The reason is probably the loss in revenue that has been reported about in late April.
But not only Seagate had to reduce the workforce since Western Digital, one of the biggest competitors, had to lay off 2,500 employees in December.
Author: Maximilian Rieche