Maxtor says to cut up to 5,500 Singapore jobs

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Maxtor says to cut up to 5,500 Singapore jobs

[LatelineNews: 2005-3-4] NEW YORK - Maxtor Corp. , which makes hard-disk drives, on Friday said it would cut up to 5,500 jobs at its Singapore manufacturing operations.
This is part of its plan to move manufacturing for additional desktop products from Singapore to China and close one of its two Singapore plans. It expects to complete the transition by first quarter 2006.

Maxtor said it expects to cut about 2,500 jobs by attrition and the remainder by severance. It plans to record an estimated $12 million charge in the current quarter.

Maxtor, which last month posted a fourth-quarter loss and has warned of a possible first-quarter loss, said it expects the cash outflow from this charge to be about even over the four quarters commencing in the second quarter.

In a filing with the U.S. Securities and Exchange Commission, Maxtor said it would spend about $6 million in retention bonuses over a two-year period, paid out as $1.5 million at the end of one year and $4.5 million at the end of the second year.

Maxtor shares closed at $5.80 in Thursday New York Stock Exchange trade. In the past year, their price has ranged from $2.81 to $10.57.