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5 percent of employees out at WD

by on19 December 2008

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Cuts necessary to survive tough economy


In a surprise announcement Western Digital will cut 2,500 jobs worldwide. Like many companies in the tech sector WD suggests that the move is necessary to survive the difficult economy that many expect to get worse before getting any better.

According to sources, WD will curb capital spending for fiscal 2009. The move will see WD move from spending an estimated $750 million to only about an estimated $500 million. In addition, the company will close two facilities, with one being located in Malaysia and the other in Thailand.

With all of the cuts on the table, it is currently unknown if the company will put on hold plans to potentially enter the SSD market space. According to Western Digital CEO John Coyne, the company expects the demand for hard drives to continue to be weak far into the middle of 2009.

Last modified on 19 December 2008
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