The company said on Thursday it expected to save about $113 million annually from the restructuring and incur pretax charges of about $53 million. (1.usa.gov/1LYRk4e)
Seagate, which has about 52,200 employees worldwide, expects to complete the restructuring by the end of the December quarter. The company expects to incur most of the pretax charges in the first quarter, it said.
Seagate has reported a fall in sales for the past two quarters, hurt by weak demand from original equipment manufacturers, including PC makers.
Research firm International Data Corp said last month that it expected a bigger drop in 2015 PC shipments than it had anticipated earlier due to a large inventory of notebooks and a strong dollar.
To help make up for a declining PC market, Seagate and rival Western Digital Corp are expanding into the growing market for cloud data storage products.
Seagate’s shares ended at $50.10 on Wednesday. Up to Wednesday’s close, the stock had fallen more than 24 percent this year.