2,500 Job Cuts For Western Digital

Western Digital Corp, a specialist in hard disk production, will cut 2,500 jobs across its worldwide operation, as well as stopping production for a number of weeks as orders for its products continue to go downhill.

The company will be closing one of its 3 hard drive factories in Thailand, and is looking at the possibility of closing or selling one of 2 factories operating in Malaysia.

Western Digital owns a facility in Sungei Wei, Selangor, and another in Kuching, Sarawak, with a combined workforce of over 8,000. The second facilities in Sarawak are expected to be affected by the major layoff move, with more than 1,000 staff to face possibility of retrenchment.

The job cut represents some 5% of its total workforce.

Between 20 December and 1 January 2009, the company will halt its manufacturing operations and cut down the manufacturing hours by some 20%.

It will also eliminate contract and temporary workers to cut expenditures, as well as implement job cuts for a range of its executives, including the Chief Executive Officer, John Coyne. Board of directors and other members of senior management will also be hit with job cut.

Western Digital is the world’s second largest hard disk drive producer behind Seagate Technology. Just like Western Digital, Seagate also plans to exercise worldwide shutdowns for some of its facilities in order to cut cost.