Komag to Cut Work Force, Close 2 Plants

Komag Inc. said it will cut 16%, or 350 employees, of its U.S. work force and close two plants to streamline its manufacturing. The disk-drive components maker also said it expects to record a one-time restructuring charge of $45 million to $60 million for trimming its worldwide work force to 4,600 people. The San Jose-based company said it expects weak demand for disk products to result in a “significant sequential decline” in revenue from its record sales of $175.1 million in the second quarter. Komag will close two plants in nearby Milpitas and consolidate its U.S. manufacturing operations at its new complex in San Jose. One plant will close in September and the other will close by the end of the second quarter of 1998. Trading of Komag shares was halted on Nasdaq. Shares last traded at $18.69.