The company will axe 1,050 peoples’ jobs worldwide, representing two percent of its headcount.
The restructuring will occur in a pre-tax charge of $53 million and these are mainly employee termination costs. It will save $113 million from the restructuring.
Seagate, like other component suppliers, have suffered from the drop in PC shipments this year, which has prompted PC manufacturers to cut their stocks of hard drive. Over the last two financial quarters Seagate has reported a drop in sales.
At the same time, there’s a lot of notebook inventory sloshing around in the channel worldwide while the effects of the strong US dollar have reduced sales and demand too.