Computer storage maker Seagate Technology said Monday it would by June 2017 as part of a global reorganization. This is in addition to the 1,600 cuts announced on June 29.
Officials from the Cupertino, Calif. company weren’t available for comment on Monday. It is not known what impact the reorganization will have on Seagate’s Longmont operations, which includes a design center and the bulk of its 1,600 Colorado employees.
The computer storage industry has been hit hard as consumers and businesses shift away from owning personal computers. According , companies that make computer components are suffering through the fifth consecutive annual decline in PC shipments.
In a Monday, Seagate said it will consolidate its global headcount by 14 percent and take a pretax charge of $164 million during the 2017 fiscal year, which typically ends in early July. The charge includes about $82 million in cash for employee termination costs.
That sent Seagate’s stock price up 12.7 percent, or $3.06, in after-hours trading from the day’s closing price of $24.09.
The company also upped its fourth-quarter sales forecast to $2.65 billion in revenues, compared to its prior forecast of $2.3 billion for the period ending July 1, 2016. The company, which said it shipped 37 million hard drives during the quarter, cited its “cost-containment execution” and “better than expected demand” for enterprise hard drives.
While the company has , Seagate grew its Longmont operations last year after , another storage maker. At the time, Seagate in Colorado while Dot Hill had 260 workers. On Monday, the company had in Longmont.
