Feeds

Seagate axes thousands

Slipped disk

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Seagate's board has given the go ahead for a seven per cent workforce reduction designed to improve the company's bottom line.

Seagate expects to chop about 3,000 jobs, which should cut annual operating costs by close to $150m. Seagate will take a $50m charge in its current quarter for the move. The hard-disk drive maker has been struggling to deal with big fluctuations in demand for its products.

While the markets for server and notebook drives have held steady, the desktop market has waned. Competitive pricing from competitors Maxtor, Western Digital, Hitachi and Toshiba has also put pressure on Seagate.

Some workers will take voluntary retirement packages, while others will be handed severance packages over the course of this year.

On a more positive front, Seagate vowed to wow the market with a series of product announcement in the coming weeks. Some of these products should open up new markets, Seagate said, while not providing more detail.

Analysts, on average, are looking for Seagate to post a 1 cent per share profit in its current quarter on revenue of $1.38bn. ®

Related stories

Hitachi production ramp-up = cheaper storage
MS seeks to merge Flash, HDD storage
Disappearing disks punish Seagate
Hitachi blows its own 300GB trumpet

Beginner's guide to SSL certificates

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Lenovo to finish $2.1bn IBM x86 server gobble in October
A lighter snack than expected – but what's a few $100m between friends, eh?
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Troll hunter Rackspace turns Rotatable's bizarro patent to stone
News of the Weird: Screen-rotating technology declared unpatentable
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.