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Seagate to cut 1,600 jobs in restructuring plan
Hard-disk drive maker Seagate Technology Plc said it would cut about 1,600 jobs, or 3 percent of its workforce, as the company looks to rein in costs amid waning demand.
Seagate said on Wednesday the restructuring is expected to result in total pre-tax charges of $62 million and is likely to be completed by the end of the September quarter.
The charges will be accounted for mainly in the current quarter. (1.usa.gov/29qhXCe)
The restructuring would result in about $100 million in savings on an annual run rate basis, the company said.
The company, which has about 52,000 employees worldwide, had said in September it would cut 1,050 jobs.
Seagate's revenue declined in the past five quarters due to weak demand from original equipment manufacturers, including personal computers makers.
The company's shares closed up 6.3 percent at $23.95 in regular trading on Wednesday. The stock had fallen nearly 35 percent this year through Wednesday's close.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)
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