Seagate Technology To Cut 1,100 Jobs

SCOTTS VALLEY, Calif. (AP) — Hard drive maker Seagate Technology said Wednesday it plans to cut about 1,100 jobs, or 2.5 percent of its global work force, as part of a restructuring plan.

Seagate said the cuts are needed to reduce costs and help the company reach its goal of becoming cash flow and earnings positive in fiscal 2010.

The restructuring plan, which is expected to be largely complete by the end of July, is expected to result in about $72 million in pretax charges. The charges will primarily be incurred in the June 2009 quarter and consist mainly of employee severance costs that are expected to be mostly paid in the September 2009 quarter.

The restructuring plan is expected to generate savings of about $125 million a year, Seagate said.