FREMONT, Calif. (AP) _ Computer component manufacturer Read-Rite Corp. said Thursday it is cutting about 1,250 jobs at its facilities in the U.S. and Thailand.
Read-Rite makes magnetic recording heads for computer hard disk drives and tape drives. The layoffs represent 11 percent of the company’s worldwide work force.
Alan Lowe, president and chief executive officer of Read-Rite, said that technical problems limited the number of 40-gigabyte hard disk drives the company was able to ship during the quarter ended Dec. 30.
Read-Rite also pinned some of its financial shortcomings on poor revenues from its subsidiary, Scion Photonics Incorporated, a fiber optics company. Scion reported revenues of $1.0 million and a loss of $7.1 million in the December quarter.
Read-Rite expects to record a charge of approximately $6 million for the layoff severance payments in the second quarter.
In trading Thursday on the Nasdaq Stock Market, Read-Rite shares dropped 14.3 percent, or 58 cents, to $3.48 a share.