Maxtor Corp. to cut jobs as it is acquired by Seagate

Maxtor Corp. to cut jobs as it is acquired by Seagate

Maxtor Corp. (NYSE:MXO) has announced their plans to cut as many as 900 jobs in Singapore. The company is also cutting in on their outlook as they are in the process of being acquired by the market leaders Seagate Technology (NYSE:STX).

Maxtor has estimated a net loss of $100 million to $104 million, or 39 cents to 40 cents per share, for the first quarter. This loss comes on revenue figures ranging from $875 million to $885 million.

The company also said in a statement that they expect the acquisition to be complete by next month. Maxtor blamed lower-than-expected unit volume growth for these losses. The expenses of getting merged with Seagate are making the situation worse. They also failed to implement certain component cost improvements.

Maxtor is also considering cutting down their production drastically due to lack of demand for their products.