Seagate cuts work force by 10,000

Article Abstract:

Seagate Technology announced plans to lay off about 10,000 workers, or 10% of its 100,000-person work force. The largest independent computer disk drive maker's move responds to problems that stem from several large competitors weakening its once exclusive share of expensive storage devices. Seagate likely will concentrate its job cuts in Asian nations that produce most of its products, including Thailand, Singapore, Malaysia and China. Approximately 1,400 job reductions include a previously announced company plan to close a manufacturing plant in Clonmel, Ireland. The employment cutbacks represent part of an overall restructuring that would produce a $300 million charge in the fiscal 2nd qtr 1998 ended Jan 2, 1998, according to Seagate. The company is expected to report a 2nd qtr 1998 net loss of up to $500 million, including operating losses and inventory changes.

Human resource management, Company restructuring/company reorganization, Reorganization and restructuring

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Seagate expects results to trail forecasts of Wall Street analysts

Article Abstract:

Seagate Technology, a leading manufacturer of disk drives, announced that it expects its fiscal fourth qtr ending on Jun 27, 1997 to be lower than expected. Seagate is anticipating its revenue for the quarter to be between 6% and 10% lower than the $2.5 billion earned in the third fiscal qtr ended on Mar 28, 1997. This is the second major PC supplier to report poor earnings for its current quarter. Intel also recently announced that its revenues would not match Wall Street's expectations. Like Intel, Seagate's low quarter is the result of problems specific to the company and not a reflection of the PC industry as a whole. One of the problems Seagate is dealing with is the increase of competition in arena of high-end storage products.

Purchasing, Company earnings/profit, Disk drives, Hard disk drive

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Hewlett-Packard cites high expenses as it posts profit far below forecasts

Article Abstract:

HP has released the results of its fiscal third qtr ended on Jul, 31 1997. The company experienced an increase in sales but its expenses were higher than it expected them to be, resulting in a lower than expected net income of $617 million, or 58 cents a share. The net income was 10 cents a share below Wall Streets expectations of 68 cents a share, causing HP's stock to drop $2.25 a share down to $63.8125. The company also experienced an increase of 15% in revenue, up to $10.47 billion compared to $9.11 billion in 1996. This jump in revenue has caused many analysts to argue that the company's performance is not as bad as it appears. HP also reported an 19% increase in orders for the quarter.

Electronic computers, Computers, Electronic Computer Manufacturing, Hewlett-Packard Co., HWP, Company Earnings/Profit

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