Seagate cuts deep to lay off 10,000 staff
by James Harding in Silicon Valley
Disk drive giant Seagate Technology will make 10,000 people - 10 per cent of its workforce - redundant in the next quarter, a far more drastic move than industry watchers had expected.
As reported by 'VNU Newswire' yesterday, Seagate plans to cut costs as quickly as possible to maintain its position in the face of plummeting disk drive prices and poor demand. But the cuts were deeper than anticipated and Seagate announced it will lay off 8,600 staff in addition to the 1,400 employees it was already shedding at its plant in Ireland (see Newswire 16 December 1997).
Seagate said it will close two of its five US design centres, consolidate US media operations and reduce staff in its worldwide sales, marketing and administrative divisions. The cuts will cost the company $300 million and will worsen the losses the company expects in its Q2 results, due next week.
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