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Quantum to lay off 800 in restructuring move

Quantum to lay off 800 in restructuring move

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Quantum will lay off up to 800 employees as part of a cost-cutting program in the company's hard disk drive group, the company announced.

The PC-peripherals company expects the move to save it about $US100 million per year, starting in fiscal year 2001.

Citing severe price competition, Quantum's hard disk drive group posted a net loss for the first quarter ending on June 27 of $43 million. The company's net income for the first quarter totalled $8.3 million, or 5 cents per diluted share, on total revenues of $1.1 billion.

The restructuring plan includes laying off 115 employees in the company's desktop drive division and between 650 and 700 employees at drive configuration centres and warehouses in Milpitas, California, and County Louth, Ireland, according to a press release issued on Thursday.

Quantum will devote more of its attention to the under-$700 PC market. Last month, the company announced the Fireball lct (low cost technology) line, its first group of low-cost drives, with sizes from 4.3GB to 26GB.

However, the company will also continue to focus on making drives for the high-end computer market. http://www.quantum.com/


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