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Quantum to Thin Ranks Again

Quantum Corp. (NYSE: DSS) has indicated that it will cut staff over the next few quarters, to the tune of several million dollars in severance pay and other associated charges.

The company also offered additional guidance on its fiscal second quarter (ending September 30), alluding to "$4 million to $5 million in restructuring charges" but making no mention of future layoffs. A reorganization in November 2003, in which 110 staffers were let go, resulted in $10 million to $15 million in charges (see Quantum Reorg Carves Off 110).

The projected layoffs follow a downward trend among suppliers that specialize in tape libraries, most notably rival Storage Technology Corp. (StorageTek) (NYSE: STK), which blamed a slowdown in IT spending for its latest disappointing figures (see StorageTek Decries IT Spending).

Overall, Quantum lowered its headcount by 11 percent during its 2004 fiscal year ended in March and currently has 1,800 employees. In a round of layoffs during the previous fiscal year, roughly 900 jobs were eliminated (see Quantum Splices Tape Unit).

A spokesman at Quantum would not elaborate on the layoffs, saying that the restructuring will be further discussed when the company reports its second-quarter earnings in early October.

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