Western Digital Axes 2,500

Lake Forest-based Western Digital announced this morning that it is cutting 2,500 employees, or five percent of the firm's workforce, as it sees softer demand for the firm's hard disk drives. According to the firm, demand for its products in the December quarter is "significantly below" the firm's expectations. As part of the cuts, the firm also said it would reduce compensation of the firm's executive officers, board of directors, and senior management; cut manufacturing and use of temporary workers; close a hard drive manufacturing facility in Thailand; and close a media substrate manufacturing facility in Malaysia. The move is expected to save the firm approximately $150 in annual costs. Number of employees in Orange County affected by the cuts was not disclosed.