Western Digital to Cut 290 Jobs in Irvine

As the last phase of its plan to reduce its total work force by 12%, Irvine-based Western Digital plans to eliminate 200 of its 2,700 permanent jobs in Irvine and terminate 90 contract workers there by the end of March, the company announced Monday.

The cuts will be made at Western Digital’s circuit board manufacturing plant and will not affect workers at the company’s corporate headquarters or at its chip manufacturing facilities in Irvine, a company spokesman said. Western Digital also said it has eliminated through attrition 400 jobs in Singapore since August. And it has laid off 40 employees in Northern California, 140 employees in Puerto Rico and 80 employees in Ireland.

Western Digital Chairman and Chief Executive Roger W. Johnson said the cutbacks reflect the company’s attempt to achieve greater operating efficiency and to respond to a slowdown in the growth of demand for its products. Western Digital is one of the nation’s largest suppliers of electronic components to the personal computer market.

The company also said the reductions reflect increased use of new, more efficient technology that makes it possible to automate a significant portion of the circuit board manufacturing process.

“Western Digital’s rate of growth has slowed from the tremendous pace the company experienced in recent years,” Johnson said. He said he expects the company’s revenue expansion to drop from 65% in fiscal 1988 to 15% to 20% in fiscal 1989 ending June 30.