Feeds

Hitachi cuts jobs, flees Mexico

Road to success is a hard drive

Internet Security Threat Report 2014

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". ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
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.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.