Seagate Cuts Over 1,000 Jobs Worldwide, Cites Falling Demand From OEMs
Seagate's bean counters say the layoffs will save the company around $113 million per year. The job cuts will also result in pretax charges of around $53 million. For Seagate, it's simply a numbers game as it puts into motion a restructuring program that it hopes will curb declining profits.
The storage maker has seen a drop in sales the past two quarters, which it attributes to weak demand from original equipment manufacturers (OEMs), PC makers included. It's a familiar complaint -- back in July of this year, IDC reported
More recently, IDC said it expects global PC shipments to drop by 8.7 percent in 2015, with stabilization not expected until 2017. If that proves true, Seagate will have a tough year ahead of it.