Feeds

Hitachi cuts jobs, flees Mexico

Road to success is a hard drive

Secure remote control for conventional and virtual desktops

Hitachi is shutting its hard drive plant in Mexico and is to delete 4,500 jobs.

The plant in Guadalajara will be purged by the middle of next year with production transfered to plants in the Philippines, China and Thailand. Hitachi expects to save $300m in costs with the division reformat.

The restructure will reduce Hitachi's global work force of 40,000 by 11 per cent. The remaining plants will specialize in certain key aspects of HDD manufacturing — creating what Hitachi calls "centers of competency."

Hitachi's plant in San Jose will remain largely unchanged.

Hitachi's HDD business - the world's third biggest - has struggled with four straight years of losses. The company faces dropping drive prices and fast-moving competition as well as possible turbulence ahead with a push for flash storage in the expanding market of portable computers.

Hiroaki Nakanishi, Hitachi Global Storage Technologies CEO, today said the business aims to increase sales by 40 per cent this calendar year.

"It will be a struggle against price falls, but we will aggressively push forward new products and cut costs to gain a profit," he told the press today.

Centralizing the component and final HDD-assembly facilities in China and Thailand will cut shipping costs and shorten production cycles, Hitachi said in a press release, advancing the company's "mega-manufacturing concept". ®

Remote control for virtualized desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
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
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
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.