Maxtor Cuts 400 Jobs To Cut Costs

Maxtor said second-quarter price declines would drop the average selling price for a disk drive to about $71, $4 below the first quarter and significantly below expectations. Maxtor expects to report a loss of between $20 to $30 million on revenue of $820 million to $825 million.

Maxtor said it expects to ship about 11.6 million disk drives this quarter, about 10 percent below expectations.

Maxtor hasn’t suffered alone. In early June, competitor Seagate Technology said it would cut 2,900 jobs, as it too tried to cut costs.

The layoffs –which will total between 400 and 500 positions worldwide — will save the company approximately $60 to $80 million annually, Maxtor said. These actions will begin in the third quarter with the majority completed by year-end.

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