Local impact of Seagate’s 14% workforce cut unclear
LONGMONT — How employees at Seagate Technology’s Longmont facility will be affected by the data-storage maker’s plan to cut about 6,500 employees, or 14 percent of its global workforce, by June 2017 remained unclear Tuesday.
In a statement on Monday afternoon, Seagate (Nasdaq: STX) said its restructuring activities and global consolidation would help it operate within a gross margin range of 27 percent to 32 percent by the quarter ending in December.
Officials at the Longmont plant at 389 Disc Drive were unavailable for comment. At the company’s Cupertino, Calif. headquarters, spokesman Eric DeRitis said late Tuesday that the next step in the process will be to evaluate the workforce needs of each facility.
SPONSORED CONTENT
Ways to thank a caregiver
If you have a caregiver or know someone who has been serving as a primary caregiver, March 3rd is the day to reach out and show them how much they are valued!
In the Form 8-K filed Monday with the U.S. Securities and Exchange Commission, Seagate also said it was taking a pretax charge of $164 million during the 2017 fiscal year, including about $82 million in cash for employee termination costs.
Seagate had laid off about 70 workers in Longmont in September, a month after the company acquired Dot Hill Systems Corp. At that time, Seagate had 1,400 workers at its Longmont facility, and DeRitis estimated that about 1,600 people work there now. When Seagate acquired disk-drive maker Maxtor in 2006, about 650 Maxtor employees in Longmont lost their jobs.
At the close of trading on Tuesday, shares of Seagate were up $5.26 or 21.83 percent at $29.35.
LONGMONT — How employees at Seagate Technology’s Longmont facility will be affected by the data-storage maker’s plan to cut about 6,500 employees, or 14 percent of its global workforce, by June 2017 remained unclear Tuesday.
In a statement on Monday afternoon, Seagate (Nasdaq: STX) said its restructuring activities and global consolidation would help it operate within a gross margin range of 27 percent to 32 percent by the quarter ending in December.
Officials at the Longmont plant at 389 Disc Drive were unavailable for comment. At the company’s Cupertino, Calif. headquarters, spokesman Eric DeRitis said late Tuesday that the next step in the process…
THIS ARTICLE IS FOR SUBSCRIBERS ONLY
Continue reading for less than $3 per week!
Get a month of award-winning local business news, trends and insights
Access award-winning content today!