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Hutchinson Tech cuts 30 percent of workforce in Hutchinson

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news Willmar, 56201
West Central Tribune
(320) 235-6769 customer support
Willmar Minnesota 2208 Trott Ave. SW / P.O. Box 839 56201

HUTCHINSON, Minn. (AP) -- Hutchinson Technology says its job cuts are deeper than earlier expected.

The Hutchinson-based disk drive parts maker said Monday it is cutting 1,380 workers, or 30 percent of its workforce. A month ago, Hutchinson Tech said it expected cuts of 20 percent to 25 percent, or 1,100.

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About 1,000 of the affected workers are in Minnesota.

A company spokeswoman says the workforce reduction is higher due to the "lower demand outlook for 2009 and continued market and economic uncertainty."

Hutchinson said it's also reducing salaries for remaining employees by 5 percent.

The Hutchinson plant will lose 950 employees, and the Plymouth facility will lose about 50 workers. Before the cuts, the manufacturer had 2,515 Minnesota workers, including 2,300 in Hutchinson and 215 in Plymouth.

The company also will cut 275 workers in Sioux Falls, S.D., and 100 in Eau Claire, Wis.

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