Seagate to lay off 1,100 in restructuring move

Heads are rolling at Seagate. The storage company says it has kicked off a new restructuring plan that will shed about 2.5% of its work force—that’s roughly 1,100 employees.

Seagate plans to complete the layoffs by the end of July, and it expects annual savings of $125 million to stem from the move. Before tax, though, this restructuring effort should cost Seagate about $72 million (largely in "employee termination costs").

This won’t be the storage firm’s first round of firings in recent months. For its 2009 fiscal year, which started on June 28, 2008, Seagate says it will have slashed labor costs "in excess of 25%" through "attrition and restructuring."

Seagate believes layoffs are necessary if it wants to start turning a profit again during the next fiscal year. If I have my math right, the company has lost $709 million during the current fiscal year so far. (It posted $60 million profits in Q1, followed by $273 million losses in Q2, and $496 million losses in Q3.)

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    • travbrad
    • 13 years ago

    and the people that do care avoid seagate :p

    • Anomymous Gerbil
    • 13 years ago

    Brilliant analysis.

    • albundy
    • 13 years ago

    heh, i could be wrong with my previous predictions. i always though that seagate would be the last one standing by the end of this year. it just might be WD.

    when you lay off that amount of people, chances are just 1 of them might be extremely important which can cause your downfall. let the entertainment begin!

    • glacius555
    • 13 years ago

    Seconded. My company is firing 8% tomorrow..

    • Vasilyfav
    • 13 years ago

    It’s called a global depression. 2.5% is a relatively small number compared to the other companies’ layoffs.

    • ssidbroadcast
    • 13 years ago

    “When all else fails, re-org.”

    • indeego
    • 13 years ago

    Probably has to do more with the times than the products. the vast majority of people have no idea nor care what brand hdd they use when they buy a computerg{<.<}g

    • Meadows
    • 13 years ago

    That’s what you get for introducing bad products at really bad times.

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