NEW YORK (TheStreet) -- Seagate Technology (STX) - Get Report stock is rising 0.35% to $24.03 in early afternoon trading on Thursdays after the company announced plans to reduce its workforce by 3%.

The Dublin-based data storage maker will cut about 1,600 jobs by September as part of cost cutting efforts. The move will results in pre-tax charges of $62 million, mostly in the fiscal 2016 fourth quarter.

Seagate estimates that the job cuts will generate about $100 million a year in savings, the company said in an SEC filing released after yesterday's market close.

Seagate and other hard disk drive manufacturers are facing declining sales as HDD is replaced with data storage based on chips, such as solid slate drive, Bloomberg reports.

Separately, Seagate Technology has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's solid financial position, which is offset by generally disappointing stock performance, deteriorating net income and poor profit margins.

You can view the full analysis from the report here: STX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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