Hard-drive giant slashes jobs
Seagate Technology aims to cut 2.5% of staff in an ongoing effort of returning to profitability.
NEW YORK (CNNMoney.com) -- Hardware manufacturer Seagate Technology said Wednesday that it would reduce its staff by 1,100 employees.
Seagate (STX), based in Scotts Valley near Santa Cruz, Calif., said the reduction of 2.5% of its total workforce was part of an ongoing restructuring to bring its company into profitability by fiscal year 2010.
The company's stock bumped up slightly in pre-market trading.
Seagate, a manufacturer of hard drives and data storage appliances, said it was trying to bring its development, marketing and administration costs below $300 million per quarter. Through the reductions, the company intends to save $125 million annually.
The company said that reductions would be "largely complete" by July, and would cost the company $72 million, primarily through termination costs.