Seagate Technology To Cut 1,600 Jobs

(RTTNews) - Hard-disk driver maker Seagate Technology plc (STX) late Wednesday said it was cutting 1,600 jobs or about 3% of its global workforce to curb expenses.

The company expects to save about $100 million a year, having a favorable impact on cost of revenue and operating expenses by about $48 million and $52 million, respectively. The company expects cost savings to begin in September.

The job cuts will, however, result in $62 million in charges in the fourth quarter, according the SEC filing.

STX closed Thursday's trading at $23.95, up $1.42 or 6.30%, on the NYSE. The stock further rose $0.04 or 0.17% in the after-hours trading.