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
- Apple's new iPhone 7 to be unveiled next month, ships September 16
- Watch all of the best Comic-Con trailers right here
- NVIDIA's next-gen Volta architecture could arrive in May 2017
- SAPPHIRE's new Radeon RX 470 and RX 460 leaked photos surface
- Rise for 'Kong' in first 'Skull Island' trailer
- SanDisk iXpand Memory Case and Battery for iPhone Review
- Gigabyte GA-X58A-UD5 + GTX 550 Ti
- Ghostbusters (2016) Cinema Movie Review
- Why do I have trouble starting my machine?
- G1.Sniper M3 Boot Loop
- AccelStor debuting NeoSapphire 3706-ES1 at Flash Memory Summit 2016
- Elitegroup ceremoniously launches ECS H110S-2P mini-STX motherboard and the all-new LIVA Pro Mini PC
- MSI announces custom GeForce GTX 1060 graphics cards
- Seagate unveils the industry's broadest 10TB portfolio
- G.SKILL announces a major software update for the RIPJAWS KM780 RGB mechanical gaming keyboard