In a sign that the cost cutting efforts are continuing atSeagate the vendor has announced plans to axe a Singapore plant and bid farewell to2,000 staff.
The hard drive specialist expects to produce annual savingsof $40m by closing the HDD manufacturing plant by the end of next year andrelocating the work to elsewhere.
Those savings will have to come after it gets a $80mrestructuring charge out of the way to cover the costs of the plant closing with$60m being recorded in the first quarter and the rest being spread across therest of its financial year.
“This closure and relocation is part of the Company'songoing focus on cost efficiencies in all areas of its business and is intendedto facilitate leveraging manufacturing investments across fewer sites. TheCompany does not expect the closure to meaningfully change production capacity,”stated the vendor in an SEC filing.
In its most recent results, for the year ended 3 July, Seagate saw sales plummet to$9.8bn from $12.7bn in 2008 and losses totalled $3bn compared to a profit of$1.26bn a year earlier.
For the fiscal fourth quarter ended 3 July, losses were $81m includingincluding restructuring charges and goodwill write-downs that totalled $106m.Sales fell to $2.35bn from $2.89bn a year ago.
At the time, Stephen Luczo, Seagate CEO said the company had made“meaningful progress toward the goal of returning to sustained GAAPprofitability as soon as possible.”