Hard disk maker Seagate Technology said it was cutting about 1,600 jobs, or 3 per cent of its workforce, as part of a restructuring plan to reduce costs.
The Cupertino, Calif., company is a top producer of drives that store data in personal computers, a market that has declined. It has developed products in newer sectors such as cloud storage, and bought Dot Hill Systems Corp. in October for about $696 million to enhance its cloud offerings according to the wall street journal
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Seagate said the plan, which it expects to complete by the end of the September quarter, is likely to result in total pre-tax charges of $62 million.
The charges will be accounted for mainly in Seagate’s fourth-quarter results, the company said.
The restructuring would result in about $100 million in savings on an annual run rate basis, the company said.
The company, which has about 52,000 employees worldwide, had said in September it would cut 1,050 jobs.
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Seagate’s revenue declined in the past five quarters due to weak demand from original equipment manufacturers, including personal computers makers.
The company’s shares closed up 6.3 per cent at $23.95 in regular trading on Wednesday. The stock had fallen nearly 35 per cent this year through Wednesday’s close.