According to the brief during Seagate's recent shareholder's
meeting, much was discussed about Seagate's recent
acquisition of its largest competitor, Maxtor. Seagate said that it plans
to lay off more than 50% of existing Maxtor employees. While the company
intends to keep the Maxtor brand name as well as some Maxtor services, it
indicated that most of Maxtor's North American employees would be let go.
Seagate said that in terms of hardware, it plans to keep Maxtor's production of
3.5-inch, 10,000 RPM Serial Attached SCSI (SAS) drives and 500GB SATA hard
drives -- the rest will be let go along with Maxtor's employees. Seagate also
indicated that it will still support Maxtor's existing channel partners but did
not indicate how long that would last.
Over in Asia, where Maxtor also has a strong presence, Seagate said it will
retain 90% of Maxtor's Asia employees, specifically over in Malaysia and
Singapore. Previously, Maxtor itself already
cut roughly 900 jobs from its workforce in preparation for Seagate's
takeover. Seagate is also expanding its presence in Singapore, with a new
R&D center expected to house more than 2000 employees.
Seagate expects to layoff between 12,500 and 13,500 Maxtor employees.