Dublin-based Seagate Technology on Wednesday said it would cut 1,600 employees or 3% of its global headcount, as part of its previously announced efforts to reduce its cost structure.
The plan, which the company expects to complete by the end of the third quarter, should result in total pretax charges of $62 million recorded primarily in the fiscal fourth quarter of 2016.
The savings generated from the restructuring activities are expected to be recognized beginning in the third quarter and will represent about $100 million in savings on an annual run rate basis, impacting cost of revenue and operating expenses favorably by approximately $48 million and $52 million, respectively, the company said.
Last September Seagate said it would cut 1,050 jobs, according to Reuters. The company currently has about 52,000 employees worldwide.
“Seagate’s revenue declined in the past five quarters due to weak demand from original equipment manufacturers, including personal computers makers,” for hard disk drive and other storage technologies, Reuters wrote.
The company’s shares closed up 6.3% at $23.95 in regular trading on Wednesday. The stock had fallen nearly 35% this year through Wednesday’s close.