Seagate: Will lay off 10% of US work force

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Seagate: Will lay off 10% of US work force

Scotts Valley (CA) – In an SEC filing today, Seagate announced it will be laying off 10% of its U.S. work force, or about 800. Seagate employs 54,000 people worldwide and about 8,000 of them work in the U.S. Seagate will disclose full details of the layoff in a follow-up SEC filing later this month.

In related news, Stephen J. Luczo, 51, Seagate’s board chairman, will assume the roles of President and CEO as William D. Watkins, 55, determines what his future role will be with the company. Watkins will stay on to assist Luczo during the transition.

Seagate’s shares closed down 16% on the news to $4.76, just over a dollar above its 52-week low of $3.67, down from a 52-week high of $24.11. Seagate recently lowered its quarterly outlook, details of which will be posted January 21 after the market’s close, down from $2.85 – $3.05 billion to $2.3 – $2.6 billion.

See the Associated Press article on BusinessWeek.