Western Digital Corporation, a maker of hard drives, said today that it will eliminate 2,500 positions, about 5% of its workforce, due to decreased demand. Demand this quarter is significantly below what was expected and the company now believes the decrease will last at least through the middle of next year. Sales are expected to average about $0.3 billion less. Western Digital is also stopping production Dec. 20 through Jan. 1, reducing temporary workers and overtime shifts, and closing three of its factories abroad: one in Thailand and two in Malaysia. The company will also reduce the pay for its executives, board of directors, and senior managers. The size of the reduction has not been specified. The measures are expected to save about $150 million a year.
See "Western Digital to slash 2,500 jobs", Los Angeles Times, December 16, 2008