Disk drive manufacturer Quantum reported a loss of $32 million for its third fiscal quarter, on revenues of 1.52 billion. The loss was caused by a restructuring charge of $74 million.
The company had warned earlier that it would be taking a charge to account for unsold supplies, but this was larger than expected. However, Quantum executives claimed the company is not expecting job cuts - such as those being made by its competitor Seagate. Quantum did cut 50 jobs in November.
Seagate has just announced its plan to eliminate about 10,000 jobs, or 10 per cent of its workforce. This announcement is said to be the greatest single layoff in Silicon Valley history. Seagate is closing a factory in Ireland and design centres in San Jose and Moorpark, California.
The disk drive market has traditionally been dominated by Seagate, Quantum and Western Digital. Analysts say all manufacturers are affected by the current oversupply of disk drives, but that Seagate is particularly damaged. Although it used to dominate the profitable high end of the market, it has lost share recently to, among others, IBM, Fujitsu and Quantum.
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