From the Orange County Register yesterday:
“Western Digital Inc., the Lake Forest-based hard-drive maker, announced today that it will cut 2,500 jobs worldwide, about 5 percent of its workforce.
The company also said it would shut down most of its manufacturing operations during Dec. 20-Jan. 1 to bring its inventories into line with what it called anticipated short-term demand.
In addition, the company will cut manufacturing work hours about 20 percent by using fewer temporary workers, reducing shift overtime and through employee attrition.
The impact on Orange County jobs was not immediately known.”
As a hub of business, Orange County can expect news releases like this to be the norm for some time to come. Although Lake Forest is home to this and many other at risk companies, there are even more such businesses located in the Orange County cities of Irvine and Newport Beach. Once the job cuts begin, it is not long before these businesses hire an attorney to file for bankruptcy on their behalf. For larger companies like Western Digital, a bankruptcy would likely be a reorganization under Chapter 11, but for other, smaller businesses, Chapter 7 bankruptcy is often the most likely route.
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