by Dan Nystedt, IDG News Service

Hitachi to Close Plant in Mexico, Cut 4,400 Jobs Globally

Mar 26, 20071 min
Data CenterIT Leadership

In an effort to shore up its hard-disk drive (HDD) operations, Hitachi Global Storage Technologies plans to close a manufacturing plant in Mexico and lay off about 11 percent of its 40,000-person global workforce. The plan is expected to be completed by the end of 2008.

The company forecasts the moves will save it US$300 million over the next five years through streamlined operations and better efficiency, it said in a statement Thursday.

By the middle of 2008, Hitachi expects to have shut down an HDD component factory in Guadalajara, Mexico, and phase out the production of media components at its Odawara, Japan, operation, it said.

The company will shift some production to factories in China, the Philippines and Thailand. Hitachi’s U.S. operations, located in San Jose, Calif., will continue to produce media components for the company.

The moves underscore Hitachi’s long-term commitment to the hard-disk drive business, it said in the statement.