Seagate Lays Off 6.500 People

Seagate Lays Off 6.500 People

by Gary Oldwood on 15 July 2016 · 1341 views

1 large Seagate Lays Off 6500 People

Seagate, the well-known company that produces hard disks for computers, will reduce its workforce by laying off 6,500 people.

The reduction in staff will be enforced by the end of the year, with approximately 14% of the company's workforce losing their job. This is not the first time Seagate lays off staff, as, according to The Next Web, the company had announced in June that it would lay off 1,600 employees because of the downward trend that the computer market is experiencing.

The paradox of this story is that Seagate expects hard drive sales to increase during 2016, compared to the company’s initial predictions. Seagate was expecting a revenue of $2.3 billion during the fourth quarter of 2016, while everything points that, at the same period the company's revenues will reach $2.65 billion.

Seagate staff cuts are expected to save the company $164 million from taxes, while those who lose their jobs will be workers in Seagate’s factories in Malaysia, China, America and England. Seagate wants to see its profits rise soon, in a market that is being tested under continuous pressure.

[Source: The Next Web]

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