Hutchinson Technology To Cut 100 U.S. Jobs

(RTTNews) - Hutchinson Technology Inc. (HTCH) said Tuesday that it expects to reduce its U.S. workforce by about 100 positions by the end of July and estimates that its fiscal 2014 third quarter financial results will include about $1.3 million of severance charges related to that action.

The company previously announced that it expected cost savings of $2.5 million per quarter through consolidation of its operations and the shift of more assembly production to its Thailand plant. Combining those savings with the actions announced Tuesday, the company now estimates that cost reductions of about $4.0 million per quarter can be achieved by the end of fiscal 2014.

"As we've progressed through our consolidation effort, additional opportunities to improve our efficiencies and reduce our costs have been identified," said Rick Penn, Hutchinson Technology's president and chief executive officer.