Seagate Technology shares fall as it announces jobs cut
Last updated: 13:20 10 Sep 2015 EDT, First published: 11:20 10 Sep 2015 EDT
US data storage giant Seagate Technology (NASDAQ:STX) has become the latest company to unveil a round of job cuts in a bid to shave costs.
The firm's shares sank 1.72% in New York to US$49.22 in morning trade.
The cull will see 1,050 jobs go, or 2% of the workforce, in the restructuring, and is expected to save around US$113mln.
Only last month, it was announced the company was to buy Dot Hill Systems Corp, a supplier of hardware and software solutions, in a deal worth US$694 million, aimed at bolstering Seagate's computer cloud software offerings.
Seagate has reported a drop in sales for the past two quarters, hit by weak demand from equipment manufacturers, including PC makers.
The group has over 52,000 employees worldwide and expects to complete the restructuring by the end of the December quarter.
