According to foreign media reports, the hard disk manufacturer Seagate has officially announced that it would lay off about 1600, accounting for 3% of the workforce. Due to the present sales in the PC market is declining, for the demand of hard disk has been reduced. Seagate the layoffs is also in order to better control the cost.
Seagate Technology (Seagate Technology) said on Wednesday, in order to achieve the cost reduction target of $100 million a year, the company plans to cut 1600 jobs, accounting for 3% of the total number of employees. In the fourth quarter of the company will therefore produce $62 million cut spending. Company's implementation is expected to begin in September, authors, including annual revenue is expected to cost $48 million drop in operating expenses by $52 million.
Seagate technology (suzhou) co., LTD. Is a Seagate international science and technology in China's large-scale integrated production base of another hard disk. Seagate technology international was founded in 1979, the predecessor is maxtor technology (suzhou) co., LTD., with a total investment of 200 million dollars. Is the world's largest hard disk and read/write head suppliers, computer storage solutions in the field of leader, occupies the core position in today's information world. Seagate technology advantage, making it the hard disk industry continuously, with its excellent product to set the world record.
Due to OEM, including PC makers, weak demand for hard disk, hard disk manufacturer Seagate's revenue in the past 5 quarters drop in a row. Seagate has announced plans to cut about 1600 people, accounting for 3% of the total employees.
Seagate says the restructuring is likely to be completed the period at the end of September, is expected to bring a total of $62 million in pre-tax expenses, these charges will be recorded in the current quarter.
Seagate is expected, the cuts will be able to let the company saving the cost of about $100 million a year. Seagate now about 52000 employees around the world. Last September, Seagate has announced 1050 job cuts.
In normal time on Wednesday trading, Seagate shares rose 6.3%, to close at $23.95. To Wednesday's close, shares of Seagate has fallen nearly 35% this year.
