Adjustments Coincide with Expiration of External Supply Obligations
PENANG, MALAYSIA and SAN JOSE, CALIF. – Mar. 20, 2008 – Western Digital® (NYSE: WDC) announced today that the majority of its media and substrate supply obligations to external customers related to its acquisition of Komag in 2007 will be fulfilled by May 2008, as planned, and that consequently WD will streamline its media and substrate operations to serve only its own hard drive business.
As part of the realignment of media manufacturing resources, the company will focus its Penang, Malaysia facilities solely on the production of magnetic media, while substrate plating and polishing operations, currently in Penang, will be consolidated into the company’s two other Malaysian substrate facilities in Kuching and Johor Bahru, maximizing operational efficiencies. Additionally, some positions in the company’s San Jose, Calif. development and media operations facility will be affected with the cessation of external business. As a result of these actions, WD will reduce its labor force by approximately 800 employees – approximately 770 in Malaysia and approximately 30 in the United States – representing less than 2 percent of the company’s total worldwide employee population of approximately 42,500.