said on Friday afternoon that it has cut its workforce by about 5% in an effort to lower its annual breakeven costs.

The company, which makes parts used in computer disk drives, said it eliminated 500 positions, mostly from its exempt/indirect divisions. Read-Rite added in a press release that none of the affected employees came from its direct labor, so it can "smoothly ramp up production volumes when the 60-gigabyte and 80-gigabyte qualifications are completed."

The job cuts, along with other planned cost-cutting measures, should have annual savings of about $30 million to $40 million, and will lower the company's break-even cash and revenue level.

Shares of Read-Rite closed at 50 cents before the news Friday.