Seagate Details First Layoffs - InformationWeek

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Seagate Details First Layoffs

Disk maker Seagate Technologies Inc. says it will cut 1,200 workers in California and Mexico and close two of its three disk plants in the next three months.

The company's Anaheim, Calif., plant will be closed in August, displacing 621 workers, though the company said some workers will be reassigned to other jobs. No mention was made of the future of 621 workers working at a doomed Mexicali, Mexico, facility. All disk production will be consolidated in the remaining plant, in Limavady, Ireland.

This is the first of Seagate's planned 8,000 job cuts---10% of its workforce--announced in September. Advancements in storage technology have allowed more data to be held on disks, curbing the demand for new disks.

Mike Schiff, an analyst with Current Analysis, says, "they are just reducing costs before going private," referring to a three-way plan with Veritas Software, an investment group led by Silver Lake Partners, and Seagate management to buy back Seagate stock.

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