From InfoWorld: Seagate Technology will cut about 6,500 jobs worldwide, or 14 percent of its workforce, with most of the cuts in manufacturing jobs, it said Monday.
The data storage maker had said in June that it was aiming to cut 1,600 employees, or 3 percent of its global workforce, by the end of the September quarter to trim costs, but the new announcement suggests that the company feels the need to reduce costs further as its hard disk drives battle in a slowing PC market amid the emergence of flash storage in devices.
The new cuts will be in addition to those announced last month. The move by Seagate comes even as the company revised upwards its preliminary financial information for its fiscal fourth quarter and year-end 2016, which ended on July 1, citing better than expected demand for its hard disk drives.
The company now expects to report revenue of about $2.65 billion for the fiscal fourth quarter 2016, against an earlier forecast of $2.3 billion. Seagate said it expects to report HDD shipments of about 37 million for the quarter, which works out to approximately 62 exabytes, average capacity per drive of 1.7 terabytes and average selling price per unit of $67.
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