Seagate to cut another 500 jobs
Seagate on Monday said it will reduce its global headcount by approximately 500 employees.
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Seagate, one of the leading suppliers of hard disc drives, expects the global head count reduction to be completed by the end of fiscal year 2018, according to a SEC filing Monday. It's not clear where the job cuts within Seagate will come from.
Seagate expects a $50 million pre-tax charge in fiscal year 2018 as a result of the global headcount reduction. It expects savings generated from the cuts will result in roughly $64 million in savings on an annual run-rate basis, to be recognized beginning in the March 2018 quarter.
In its most recent earnings report, Seagate said revenue in the September 2017 quarter decreased by $165 million from the September 2016 quarter primarily as a result of "price erosion partially offset by an increase in exabytes shipped."
We have reached out to Seagate to learn more about the job cuts.
Former Seagate CEO Steve Luczo became executive chairman Oct. 1 and was replaced by Dave Mosley, who was chief operating officer. The leadership transition came after rocky fourth quarter results due to an inventory glut in high capacity drives and storage vendors are increasingly competing on price.
Luczo warned in July: "the near-term dynamics of technology shifts present demand variations for the storage industry."
In January 2017, Seagate announced the shutdown of its factory in Suzhou, China that included more than 2,000 jobs from its 2016 goal of cutting 6,500 employees globally.