World Economy

US Co. Reducing Workforce

US Co. Reducing WorkforceUS Co. Reducing Workforce

Seagate Technology Plc, a maker of disk drives for computer storage, expanded plans to cut jobs to 14% of the workforce, seeking to reduce costs to weather a prolonged slump in demand, Bloomberg reported. The company will eliminate about 6,500 positions by the end of fiscal 2017, according to a statement. Cupertino, California-based Seagate had previously indicated workforce cuts of about 3%, or 1,600 jobs, and the stock rallied as much as 13% on news of the broader restructuring. The moves will result in pretax charges of about $164 million next year. Component makers are suffering through a fifth consecutive annual decline in personal-computer shipments.