Seagate Restructures To Further Reduce Operating Costs
SCOTTS VALLEY, Calif. - May 13, 2009 - Seagate Technology (NASDAQ: STX) today announced it has initiated a restructuring plan that includes a reduction of approximately 1,100 employees or 2.5% of the company's global workforce. This reduction is required to support a targeted run rate of product development and marketing and administrative costs of less than $300 million per quarter and to position the company to be cash flow and earnings positive within its fiscal year 2010.
The restructuring plan, which the company expects to be largely complete by the end of July 2009, is expected to result in total pretax restructuring charges of approximately $72 million. These charges will primarily be incurred in the June 2009 quarter and consist mainly of cash based employee termination costs which are expected to be substantially paid in the September 2009 quarter. The annual savings generated from this restructuring action is expected to be approximately $125 million.
Since the beginning of fiscal year 2009, and including today's announcement, the company has reduced its global headcount through attrition and restructuring, resulting in a reduction in the company's labor costs in excess of 25%. In addition, Seagate previously announced the realignment of its organizational structure to increase efficiency, as well as the closures of two recording media facilities and its Pittsburgh research facility, company-wide salary reductions announced in January 2009, and other cost reduction initiatives. Seagate continues to assess options to further reduce manufacturing operating costs.
Seagate is the worldwide leader in hard disk drives and storage solutions. Learn more at http://www.seagate.com
Latest News Posts
- 'Jurassic World' director hints at open-source dino future
- 'Tron' actor gives up on prospect of more films
- New mod transforms GTA V into a RPG, thanks to modder Logic Spawn
- 3 Reasons Your Car Needs This Essential Gadget
- Could social media eventually turn on the Islamic State?
- Nem ASUS sabertooth 990fx R2.0+ 4.7 pro freeze
- MSI X99A GODLIKE GAMING (Intel X99) Motherboard Review
- AMD A-Series A10-7870K Kaveri Refresh APU Review
- BRIX (BXi3H-4010) Unable to install Win10
- Ga-z77x-ud3h via usb 3.0
- Seagate Reports Fiscal Third Quarter 2015 Results
- IBASE Announces ASB200-908 IPC
- Corsair Memory, PSUs, and CPU Coolers Pave the Way for Next Gen PC Processors
- Windows 10 Free Upgrade on GIGABYTE Laptops!
- Gamescom 2015 - Vertagear Racing Series at Caseking's Booth