Western Digital to cut 2,500 jobs
Western Digital Corp. on Wednesday said it was cutting 2,500 jobs, or 5% of its workforce, as the tech company also lowered its quarterly outlook citing weakening demand.
The Lake Forest, Calif.-based tech storage company said it was reducing it workforce and expects revenue for its December quarter to be in the range of $1.7 billion to $1.8 billion. Previously, the company projected sales of between $2.025 billion and $2.15 billion.
In a prepared statement, CEO John Coyne said, “In the current macro economic climate, we expect demand weakness to last well into the middle of the 2009 calendar year.”
Coyne added that the company also was “taking additional steps to immediately reduce production capacity and operating expenses on a longer-term basis across our entire business as we approach the seasonally weaker second half of our fiscal year.”
In addition to the job cuts, the company also was reducing the compensation of the company’s executive officers, board members and senior management, closing facilities in Thailand and Malaysia and slashing capital spending for fiscal year 2009 from $750 million to roughly $500 million, the company said.
From Market Watch
