NEW YORK - Computer hard-drive maker Seagate Technology on Monday said it planned to cut about 6,000 jobs as part of its just completed $1.9 billion acquisition of rival Maxtor Corp.
Seagate, the biggest U.S. hard-disk drive maker, said the job cuts would come from Maxtor's workforce of about 12,000, meaning about 50 per cent of that company's would not offered positions with new Seagate.
The company said the job cuts, which will mostly impact workers in Europe and the United States, would be finished by the end of the year.
Seagate, in completing its purchase of Maxtor on Monday, said the deal would increase earnings per share by 10 per cent to 20 per cent after the first year of combined operations.
The deal gives Seagate, which makes disk drives for Microsoft Corp.'s Xbox 360 gaming console as well as for personal computers, a more than 40 per cent share of the disk drive market. It previously had about a 30 per cent share.
The combined company retains the Seagate name and is listed on the New York Stock Exchange as "STX."
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