Seagate announced today that it is increasing planned layoffs from 1,600 to 6,500 positions, as the hard drive maker tries to navigate a global decline in PC sales.
Just two weeks ago, the company revealed the original job cut plans. But in a fourth quarter earnings preview, executives decided to up that figure. The new 6,500 job cuts amounts to 14 percent of the company’s global workforce.
In the earnings preview for its fourth quarter, the company said it will report revenue of $2.65 billion and gross margins of 25 percent. That’s better than Seagate’s own forecast of $2.3 billion and margins of 23 percent. The company said it will ship 37 million hard drives.
Despite the positive quarter, Seagate is apparently bracing itself for a tough long-term outlook.
“The evolution of mobile and cloud data driven environments continues to define itself as requiring significant amounts of mass storage,” said Steve Luczo, chairman and CEO of Seagate, in a statement. “Seagate will continue to evolve its product offering, technology investment and manufacturing footprint to best serve our customers.”
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