Feeds

Quantum sheds 800 jobs worldwide

Announces $50m reshuffle in the face of stiff competition

  • alert
  • submit to reddit

High performance access to file storage

Quantum is to slash 800 jobs and re-jig its hard disk drive business following the onslaught of cheaper PCs and stiff pricing from rivals. The company said it would cut 13 per cent of staff due to increasing competition in the market and the growing popularity of sub-$750 computers. In a company statement, Quantum said it would take a $50 million charge in the quarter ending 26 September for the cuts, aimed at saving the company $100 million annually starting in fiscal 2001. 115 staff will go immediately, with the rest leaving over the next year from facilities in Milpitas, California, and Dundalk, Ireland. About 615 of the jobs will be lost from the Milpitas operation, or about 26 per cent of staff there. "The goal of this restructuring is to quickly adapt our business to the changing needs of our PC customers," said John Gannon, president of Quantum hard disk drive group. "The growth of the low-cost PC market has become a challenge for virtually every company in the PC supply chain, and Quantum is no exception. "However, we view this high growth segment of the disk drive market as a huge opportunity, and we are confident that the changes we're implementing now are going to position us strongly for the future in this important market segment," added Gannon. Quantum employs around 6,000 staff worldwide, with over 4,000 of these employed in its disk drive business. Brown said the moves, announced yesterday, were designed to adapt Quantum’s business to the low-cost PC market, as increasing numbers of customers were shifting from custom to standard configuration drives. However, he added that the changes were not expected to combat the short-term effects of competitive pricing from rivals in the disk drive market. "On that front, Quantum will continue to speak out strongly against the destructive pricing practices that are plaguing our industry," said Brown. Last week, Quantum hit out at Seagate, accusing it of selling products at below cost price. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.