Seagate Cuts Over 1,000 Jobs Worldwide, Cites Falling Demand From OEMs

To cope with a PC market that continues to see declining sales and cut operating expenses, Seagate is reportedly preparing to slash around 1,050 jobs. That amounts to a 2 percent reduction in the company's total workforce, which currently sits at around 52,200 employees.

Seagate's bean counters say the layoffs will save the company around $113 million per year. The job cuts will also result in pretax charges of around $53 million. For Seagate, it's simply a numbers game as it puts into motion a restructuring program that it hopes will curb declining profits.

Seagate Clean Room

The storage maker has seen a drop in sales the past two quarters, which it attributes to weak demand from original equipment manufacturers (OEMs), PC makers included. It's a familiar complaint -- back in July of this year, IDC reported a near 12 percent year-over-year decline in PC sales

More recently, IDC said it expects global PC shipments to drop by 8.7 percent in 2015, with stabilization not expected until 2017. If that proves true, Seagate will have a tough year ahead of it.