Hard-drive maker Seagate is decimating its workforce (well, seven percent) with the loss of 2,940 jobs in order to reduce costs by $150 million following a poor sales patch.

Seagate executives updated their financial outlook yesterday for the company's fourth quarter, which ends 2 July, and said lower demand in mobile storage would cut its market share by two to three percent. Demand in personal storage products is also expected to be down for the quarter, to 45 million units from an earlier projection of 48 million. The company will also put $50 million in restructuring costs on this quarter's balance sheet.

Seagate's CEO and chairman, Steve Luczo, said seven percent of the company's worldwide workforce would be cut to shave costs but no facilities would be closed. The majority of the job cuts will come by the end of the year, he said.

In April, Seagate posted revenue of $1.39 billion for its third quarter and net income of $159 million. That compares with $1.62 billion and $174 million in the same quarter the previous year. The company noted at the time that the reduction in notebook hard-drive shipments, from an expected 1.6 million drives to actual shipments of about one million drives, had the biggest impact on Seagate's third-quarter earnings results.