Seagate Slashes 6,500 Jobs Worldwide
Silicon Valley data storage major, Seagate Technology announces 6,500 jobs lay-off worldwide over the next year.
According to reports, the company cited that the 14 percent workforce reduction was part of a restructuring and “footprint consolidation” that would help the bottom line. The jobs to be eliminated are in the Americas, Asia, Europe, the Middle East and Africa, the company said.
Seagate’s most recent quarterly report demonstrated a $21 million loss for the quarter ending April 1, after the company brought in $291 million in income for that period last year. Revenue fell to $2.6 billion from $3.3 billion for the quarter over the same period last year.
For the nine months that ended April 1, revenue had dropped to $8.5 billion from $10.8 billion the year before. However, the company’s cost of generating revenue also declined, to $2.1 billion for the quarter ending April 1 from $2.4 billion, and to $6.6 billion from $7.8 billion for the nine months preceding April 1.
Seagate upgraded its estimated revenue for the quarter that ended July 1 to $2.65 billion, from a forecast of $2.3 billion. The firm chalked up the improvement to “better-than-expected” demand for hard disks. In a market where businesses are increasingly turning to semiconductor-based flash storage , Seagate sold record numbers of high-capacity disks in the latest quarter, said CEO Steve Luczo.
The cuts will cost the Cupertino-based Seagate $164 million during the fiscal year, including $82 million in employee termination expenses, the company said in a filing with the Securities and Exchange Commission.
