Seagate slashes 1,100 jobs

 

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By Stuart Turton

Posted on 13 May 2009 at 17:45

Seagate will slash another 1,100 jobs, as it aims to save $125 million a year.

The cuts represent 2.5% of its global workforce and will be completed by the end of July, according to the company.

Seagate says the aim is to return to profitability by 2010, a plan which requires the company to drive marketing and product development costs below $300 million a quarter.

Seagate has now shed a quarter of its workforce since July as it follows through on a restructuring plan instituted by chief executive Stephen Luczo, who took over from Bill Watkins in January.

The plan has seen it close two manufacturing facilities and one research lab over the past year, though it refuses to rule out further cuts saying it will "continue to assess options to further reduce manufacturing operating costs".

The cuts come with a $72 million cost that covers severance payments and restructuring charges.