Dive Brief:

• Hard-disk maker Seagate said it will cut 1,050 jobs, or 2% of its workforce, as part of a restructuring program, according to Reuters.
• Seagate said it expects to save about $113 million annually from the restructuring.
• The company’s sales have been down for the last two quarters.

Dive Insight:

Chip makers aren’t the only ones feeling the effects of slowing PC sales. Seagate Technology Plc announced today that it will cut 2% of its workforce, citing weak demand from PC makers as a major factor in its decision, reports Reuters.

Research firm International Data Corp said last month that it expected a bigger drop in 2015 PC shipments than it had anticipated earlier due to a due to a number of factors, including a large inventory of notebooks, economic issues and free upgrades of Windows 10.

As PC sales slow, hard-disk makers and chip makers are looking for new ways to stay profitable. Last month, an alliance of companies including Seagate, Toshiba and Western Digital announced they are working with the Linux Foundation to develop the Kinect Open Storage Project, which will strive to provide “open source object storage on next generation, Ethernet-enabled storage devices.”