Data storage company Seagate Technology recently announced that it is laying off 500 employees across 12 countries as part of a cost cutting strategy. The laid off employees make up about 1% of the company’s global workforce, according to a regulatory filing.
The development was first reported by the Business Journal. However, when the news website contacted the company, it didn’t specify the locations where the job cuts are located.
The company said in the filing that the cuts are “intended to drive additional operational efficiencies and better position the company to capitalize on secular growth opportunities driven by increasing demand for mass capacity storage and data management from endpoints to edge to core.”
In addition to the layoffs, Seagate plans to consolidate its facilities in Minnesota to one location and “continue to align resources to better support future growth prospects.” The Minnesota consolidation will provide “greater collaboration opportunities and drive economies of scale,” Seagate said.
Seagate plans to complete the cost-cutting plan by the end of the first fiscal quarter of 2021 and said it would likely cost around $74 million in pre-tax charges, mainly in the current fiscal year.
Meanwhile, another storage company, Hitachi Vantara laid off 151 employees at its Santa Clara headquarters in February amid a tough enterprise storage market. That company recently integrated with Hitachi Consulting and acquired Waterline Data and is working to pivot toward what the company called “a new kind of digital infrastructure and solutions company.”
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