Seagate to cut 1,600 jobs amid weak demand

The storage giant said the cuts equate to 3 percent of its workforce and are part of a previously-announced restructuring effort.
Written by Larry Dignan, Contributor

Seagate said it will cut about 1,600 jobs -- or 3 percent of its workforce -- as part of a restructuring plan that should be complete by the end of September.

The company added in a regulatory filing that it expects to take a charge of $62 million in its fiscal fourth quarter. Charges will cover employee termination costs. However, Seagate also said it will save about $100 million a year.

The storage company has been struggling with weak growth, and in April, cut its outlook. For its fiscal third quarter, Seagate reported a net loss of $21 million, or 7 cents a share, on revenue of $2.6 billion. On a non-GAAP basis, Seagate reported earnings of $66 million, or 22 cents a share, for the third quarter.

At the time, Seagate CEO Steve Luczo said the company's product portfolio was strong, but the "short-term dynamics of our industry are challenging".

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