Seagate to slash 8,000 jobs

Seagate Technology said it would cut

8,000 jobs, or 10 per cent of its workers, as part of a plan to streamline

operations while prices continue falling. Seagate will take a $200 million

pre-tax charge this quarter for the cuts, which will be made through

firings, voluntary severance, and retirement at plants in Singapore,

China, Malaysia, Thailand, Scotland, and the United States during the next

nine months.

The company is expected to report a loss in the quarter ending this

month in part because it's slashing prices to compete with rivals. The

companies are struggling in part because PC makers are slashing prices

every month, putting pressure on their suppliers to cut component costs.

The company said it is cutting staff in an effort to be more efficient.

Seagate expects to save $150 million a year because of the cost-cutting

and may take more charges for further actions. Prices for disks built into

personal computers are falling especially fast. In the fourth quarter,

Seagate's profit from operations rose to $69 million, or 30 cents a share,

from $26.6 million, or 11 cents, in the year-earlier period.