Seagate Technology slashing 600 jobs

Technology

A Seagate Tech external computer hard drive is shown in this photo illustration in Encinitas, California, U.S., January 23, 2017. REUTERS/Mike Blake - RTSX1F4

Seagate Technology PLC (STX) shares tumbled on Tuesday after reporting a disappointing quarter and announcing plans to cut 600 workers globally as outlined in a filing with the SEC.   

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The moves are part of restructuring which is expected to save the company $90 million. Additionally, CEO Steve Luczo will be replaced by President and COO Dave Mosely. Luczo will take on the role of Executive Chairman.

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The news came after the storage maker reported fiscal fourth-quarter net income of $114 million on Tuesday, falling short of expectations.

On a per-share basis, the Dublin-based company said it had net income of 38 cents. Earnings, adjusted for one-time gains and costs, came to 65 cents per share. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 99 cents per share.

The electronic storage maker posted revenue of $2.41 billion in the period, which also did not meet Street forecasts. Seven analysts surveyed by Zacks expected $2.55 billion.

For the year, the company reported profit of $772 million, or $2.58 per share. Revenue was reported as $10.77 billion.

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Seagate shares have climbed 4 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 10 percent. The stock has risen 26 percent in the last 12 months.

The Associated Press contributed to this report.

This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on STX at https://www.zacks.com/ap/STX