Hard disk vendor ?realigns cost structure? after falling short of targets

Western Digital to axe 2,500 jobs

Western Digital has announced that, as a result of a significant shortfall in revenue, it is to cut five percent of its global workforce, amounting to 2,500 jobs, close two manufacturing facilities and dramatically reduce spending.

A drop in demand and heightened competition in the components sector has seen Western Digital profits decline, with revenue falling short of the $2.1 billion predicted in October and now stands at $1.8 billion.

“In the current macro economic climate, we expect demand weakness to last well into the middle of the 2009 calendar year,” said Western Digital’s president and chief executive officer John Coyne.

“Consequently, we are 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.”

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