Maxtor said it expects to cut about 2,500 jobs by attrition and
the remainder by severance. It plans to record an estimated $12
million charge in the current quarter.
Maxtor, which last month posted a fourth-quarter loss and has
warned of a possible first-quarter loss, said it expects the cash
outflow from this charge to be about even over the four quarters
commencing in the second quarter.
In a filing with the U.S. Securities and Exchange Commission,
Maxtor said it would spend about $6 million in retention bonuses
over a two-year period, paid out as $1.5 million at the end of one
year and $4.5 million at the end of the second year.
Maxtor shares closed at $5.80 in Thursday New York Stock Exchange
trade. In the past year, their price has ranged from $2.81 to
$10.57.
