Seagate Announces Layoffs
Seagate Technology, a California-based hard disk drive company with operations in Shrewsbury, will lay off 2.5 percent of the company's global workforce, or 1,100 employees.
The company lost $769 million over the last two quarters. It said the reduction will position it to make a profit within its fiscal year 2010, which starts in July.
Seagate said the restructuring effort, which it expects to complete by the end of July, should save about $124 million a year while incurring pretax restructuring charges of about $72 million. The company will feel most of that cost in June, it said.
Seagate has already reduced its employee count since the start of fiscal 2009 through attrition and restructuring. With the new announcement, it said labor costs will be down 25 percent. It said it is still assessing options to reduce manufacturing operating costs.
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