Seagate unveils further round of layoffs, citing economic uncertainty
By Scott Kanowsky
Investing.com -- Data storage firm Seagate Technology PLC (NASDAQ:STX) has announced plans to reduce its workforce by an additional 480 employees, adding to a prior round of layoffs.
The hard drive maker said it expects the latest dismissals, which will amount to around 1% of its global headcount, will be "substantially completed" by the end of its June quarter.
The California-headquartered business previously slashed 8% of staff, or about 3,000 workers, last October due in part to an easing in a pandemic-era surge in demand for PCs and servers.
"The expanded plan is expected to result in further cost savings to better navigate the current macro-economic challenges," Seagate said in a statement on Wednesday.
Seagate projects that it will start to save approximately $40 million to $45 million on an annualized basis from the layoffs. But the move will also incur total pre-tax charges of as much as $65M.
Multiple job functions and locations will be impacted, Seagate said.
Shares in Seagate gained more than 3% in early U.S. trading.
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