Seagate to axe two per cent of global workforce

Storage vendor to make 1,050 redundancies by the end of the year

Storage giant Seagate has announced it is cutting two per cent of its global workforce.

In a company filing, Seagate said it is going to reduce its workforce by around 1,050 people, which equates to roughly two per cent of its total staff.

These cuts come as part of a "restructuring plan intended to realign its cost structure with the current macroeconomic business environment", a company statement said.

"The plan, which the company expects to largely complete by the end of the December 2015 quarter, is expected to result in total pretax charges of approximately $53m (£34.4m)," Seagate said.

"These charges will primarily be incurred in the September 2015 quarter, and will consist mainly of employee termination costs, with the majority of cash payments expected to be paid in the December 2015 quarter."

But Seagate said the money it will make from the restructure will boost its finances in the long run.

"The savings generated from these restructuring activities are expected to amount to approximately $113m annually," it said.

For its Q3 ending 3 April, Seagate's net profit was $291m, down from $933m in its previous quarter, on sales of $3.3bn, down 10 per cent sequentially.

Steve Luczo, Seagate's CEO, said its latest results were hit by "near-term macro uncertainty".