Western Digital announced today that they are closing one of their 3 manufacturing plants in Thailand, and laying off around 5% of their total workforce — roughly 2500 people. In addition to the closure, they are cutting back production at their other fabrication plants, and reducing compensation to upper management.
This is a reaction to lower then expected third quarter revenues, and was not entirely unexpected. I just hope we don’t end up having to bail them out too.
Thailand is being hit by many other manufactures cutting back on operations in the technology area. Recent events have also lead to a decrease in Tourism.