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This article was published on June 30, 2016

Seagate is cutting 1,600 jobs as demand for hard drives spin down


Seagate is cutting 1,600 jobs as demand for hard drives spin down Image by: Seagate

Cupertino, California-based hard drive maker Seagate revealed in an SEC filing that it will slash 1,600 jobs by the end of Q3 2016, amounting to roughly 3 percent of its global workforce.

The company noted that its plan will likely result in pre-tax charges of $62 million, which will be accounted for in its fourth-quarter results this year. It predicts that the job cuts will help it save about $100 million each year.

The decision follows a sustained decline in demand for its products from PC manufacturers over the past five quarters. PC shipments worldwide went down by 8 percent from figures recorded in 2014.

It’s not the only company to be hit the slump; in April, Intel announced that it would lay off 12,000 employees through mid-2017.

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