Disk drive maker Seagate has two per cent of its workforce destined for the exit door.
It’s announced a restructuring plan which means 1,050 people are going to have a pink slip shock.
Seagate expects to save $113m by doing this. It has seen two quarters of declining revenues and profits.
While investors, who have seen shares fall from $68.76 in late December to $50.10 now, get the benefit of share buybacks and dividends, 1,050 employees, who have helped to generate the revenues on which those buybacks and dividends depend, will be given the push.
The lay-offs should be complete by the end of December this year, and will cost a pre-tax charge of $53m in order to generate the $113m/year saving.
Some of the savings are expected to be put into cloud products and flash. ®