Hutchinson Technology layoffs go into overdrive (1,380 Jobs Lost)

[OhioChick]

Source: MinnPost.com

Published Tue, Jan 13 2009 10:06 am

The layoffs will be more severe than expected at Hutchinson Technology. The company, which makes components used in computer disc drives, said Monday that it now plans to reduce its workforce by 1,380.

That's about 30 percent of its workforce. Last month, the company said it was planning to cut between 20 and 25 percent.

A spokeswoman told the Star Tribune that the added layoffs can be attributed to an even lower demand outlook for 2009. About 950 jobs will be lost in Hutchinson, and another 50 eliminated at a Plymouth facility.

Hutchinson Technology said in a statement that it won't comment further on the restructuring until it issues its first-quarter results Jan. 27.



Read more: http://www.minnpost.com/businessagenda/2009/01/13/5793/hutchinson_technology_layoffs_go_into_overdrive

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More jobs gone...

[trotsky]

1. The economy sucks, and this also has technological reasons.

Solid state drives - basically just a whole bunch of memory that doesn't go blank when you turn off your computer - are now entering the mainstream. Physical disk drives with spindles, read heads, etc. are going to see their market share continue to decline.

[ChromeFoundry]

2. I wonder if this is related to the Seagate layoffs. n/t

[FarCenter]

4. Could be, or they could have lost a customer

According to their 10K "Risks" section, 99% of sales are to 5 customers.

And TDK made some acquisitions that positions TDK to compete with them.

[CatholicEdHead]

6. HTI makes the suspension assembilies

Which are the movable bar which holds the needle which reads the data. It is a crucial part of hard drives and Seagate is laying people off so they are related.

[Thor_MN]

9. Needle? The read/write head is a magnetic device.

Needle isn't a horrible analogy as long as you are talking to someone who knows what a record player is, but those disappeared when I was in college. Since there's no contact between the pickup and the platters ( contact would result in a destructive hard drive "crash") you need something to suspend the pickup just above the platters. Making needle an imperfect analogy in any case.

Combine that with Best Buy layoffs and there is a lot of people in Minnesota that are going to be hurting. One of my college room mates was caught up in a Met Life resizing yesterday - said that 65% of his division faced layoff. January's employment numbers are going to dreadful, and you just know that the GOP is going to try to pin it on the Congressional majority and Obama.

[Azlady]

3. crap - this snowball is out of control and must be stopped! n/t

[babylonsister]

5. Another one. Just spoke to my sister-in-law laid off in Dec.

(GA) She was due for her unemployment to start 2 weeks ago, and it hasn't. What are people doing who rely on that money, who have little kids to feed?

[Seldona]

7. My wife will find out tomorrow if she will be one of the laid off or not.

They are a great company too. Damn.

[uncle ray]

8. that will be devastating to the community.

hutch is a pretty small town.

[Cessna Invesco Palin]

10. Not entirely unexpected.

The problem started in retail due to lower consumer spending and credit availability, then moved to the manufacturers, and is now trickling down into the component suppliers. There are going to be a lot of people out there with no place left to go.