Feeds

Seagate axes thousands

Slipped disk

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.