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Maxtor to cut up to 1,500 jobs in US, Singapore

Maxtor to cut up to 1,500 jobs in US, Singapore

Maxtor on Thursday said it will lay off 1,400 to 1,500 employees at facilities in the US and Singapore over the next six months.

The cutbacks are partly a result of Maxtor's merger with Quantum's Hard Disk Drive (HDD) division. The merger was announced in October and completed in April. In October, the companies said they would cut redundant positions and departments to save between $US120 million and $200 million per year.

Thursday's announcement indicated that the company is increasing its layoffs because of the slowing economy.

"The second quarter has been characterised by weaker than expected demand for hard drives, affecting inventory levels and pricing. With the outlook for continued weakness in the PC market and limited visibility for the remainder of this year, we believe it is necessary to both accelerate the expense reduction opportunities available through our merger with Quantum HDD and to balance our manufacturing workforce with expected levels of demand," said Mike Cannon, president and CEO of the company.

The cuts will effect 700 employees in Singapore and 700 to 800 employees in the US.

Maxtor manufactures storage products for desktop computers, high-performance Intel-based servers, network-attached storage and consumer electronics. It is the world's largest hard drive manufacturer in terms of unit shipments.


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