Seagate Technology Inc. said it plans to cut another 2.5% of its work force, or about 1,100 jobs, as it moves to lower costs in line with slumping revenue.
The latest layoffs, to be completed by the end of July, will result in some $125 million in annual savings. The computer disk-drive maker said the move is needed to push its overhead, marketing and product-development costs below $300 million a quarter, a level the company said is necessary to return to profitability.
Seagate last month suspended its dividend and sold $430 million of notes as part of its cash-raising efforts. The company, which has struggled with pricing pressure from fierce competition even before the recession hurt demand, has been focusing on fixing execution problems.
Since this past July, the Scotts Valley, Calif., company has shed more than one-quarter of its work-force costs, including Wednesday's announcement, as personal-computer demand has weakened. In its latest quarter, Seagate said revenue fell 31%.
The layoffs, announced Wednesday, are expected to result in some $72 million in charges, primarily recorded in the company's fiscal fourth quarter ending in June.
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