Seagate Continues to Shrink, Closing Design Center in Korea

SEC filing:

On March 9, 2017, Seagate Technology plc committed to an additional restructuring plan in connection with the continued consolidation of its global footprint across Asia, EMEA, and the Americas.

Pursuant to the plan, the company intends to close its design center in Korea, which will result in the reduction of the company’s headcount by approximately 300 employees.

This action, which the company expects to be substantially completed by the end of fiscal year 2017, is expected to result in total pre-tax charges of approximately $50 million, primarily in fiscal year 2017.

The majority of the charges will be comprised of cash expenditures on severance and employee-related costs. The balance of the charges will include other cash expenditures on exit-related costs, as well as other non-cash charges.