Quantum to Cut 1,100 Jobs Amid Restructuring
Quantum Corp., a Milpitas, Calif., maker of computer data-storage devices, will reduce its work force by 1,100, or 37%, as new Chief Executive Richard Belluzzo seeks to pare costs and return to profitability by March.
About 80% of the workers cut will be hired by Jabil Circuit Inc., which is assuming some Quantum manufacturing. The job cuts and other costs to restructure will trim earnings by $100 million in the second and third quarters, Quantum said.
Belluzzo, a former Microsoft Corp. president, joined Quantum last week. He plans to tighten Quantum’s spending and boost sales of products that are more profitable than hardware systems, such as services and software, amid a slump in corporate demand for technology.
Quantum shares fell 21 cents, or 6.5%, to $3.01 on the New York Stock Exchange.
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