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Western Digital will lay-off 400 workers in Bay Area, more job cuts likely to come

By Kenny Yeo - on 7 Jun 2016, 10:04am

Western Digital will lay-off 400 workers in Bay Area, more job cuts likely to come

(Image source: Glassdoor)

According to reports, Western Digital is planning to lay-off some 400 workers in the San Francisco Bay Area.

This report comes after official filings with state labor officials surfaced. The filings indicate that Western Digital is looking at eliminating 405 jobs in the Bay Area.

Faced with a weak PC market and also dwindling demand for hard disk drives, Western Digital's move to reduce jobs is not surprising.

Some reports suggest that shipments of hard disk drives are down a whopping 20% year-on-year in Q1 of 2016 alone.

During the same span of time, shipments of SSDs are said to be up 32.7% year-on-year. 

Fortunately, Western Digital recently completed the acquisition of flash storage giants SanDisk for around US$17 billion. This would allow them to be more a formidable competitor in the SSD space.

However, analysts believe that more job cuts are yet to come as a result of this acquisition as Western Digital would want to streamline its operations and be as efficient as possible.

Source: The Mercury News

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