|
The
company said on Thursday it expected to save about $113 million
annually from the restructuring and incur pretax charges of
about $53 million. (http://1.usa.gov/1LYRk4e)
Seagate, which has about 52,200 employees worldwide, expects to
complete the restructuring by the end of the December quarter.
The company expects to incur most of the pretax charges in the
first quarter, it said.
Seagate has reported a fall in sales for the past two quarters,
hurt by weak demand from original equipment manufacturers,
including PC makers.
Research firm International Data Corp said last month that it
expected a bigger drop in 2015 PC shipments than it had
anticipated earlier due to a large inventory of notebooks and a
strong dollar.
To help make up for a declining PC market, Seagate and rival
Western Digital Corp are expanding into the growing market for
cloud data storage products.
Seagate's shares ended at $50.10 on Wednesday. Up to Wednesday's
close, the stock had fallen more than 24 percent this year.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Don
Sebastian and Kirti Pandey)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
|
