Western Digital Corp. to Cut 2,500 Jobs

Dec. 18, 2008
Closing three plants in Thailand and Malaysia

Hard drive maker Western Digital Corp. announced on Dec. 17 that it was cutting its workforce by 5%, or some 2,500 employees, because of weaker demand. "In the current macro economic climate, we expect demand weakness to last well into the middle of the 2009 calendar year," president and chief executive officer John Coyne said. "Consequently, we are taking additional steps to immediately reduce production capacity and operating expenses on a longer-term basis across our entire business."

Western Digital lowered its revenue outlook for the quarter ending on December 26 to $1.7 billion to $1.8 billion from the previous guidance of $2.025 billion to $2.150 billion issued in October.

The company is also reducing the compensation of the executive officers, board of directors and senior management of the company by an unspecified amount.

It said it was closing one of its three hard drive manufacturing facilities in Thailand and another manufacturing facility in Malaysia.

Western Digital said it expected the moves, to be completed by the end of March, to result in annual savings of $150 million.

Copyright Agence France-Presse, 2008

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!