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Annie Baxter
St. Paul, Minn.

Hutchinson Technology job cuts go deeper

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Hutchinson Technology says it has to slash more jobs than it initially announced in December. The Hutchinson, Minn.,-based company makes components for computer hard drives.

Hutchinson Technology is trimming nearly 1,400 jobs or 30 percent of its workforce. That's 5 percent to 10 percent more than what the company said it would cut in December.

Spokeswoman Connie Pautz says the majority of the layoffs -- or 950 -- will be at a plant in Hutchinson. A plant in Plymouth, Minn. is shedding about 50 workers.

Facilities in Sioux Falls, S.D. and Eau Claire, Wis., will take a combined cut of roughly 400 jobs.

Pautz says most of the cuts are effective immediately. She says workers are receiving severance packages and two months of health and dental benefits.

Hutchinson's main product is a key component inside a computer hard drive. Pautz says the recession is driving down demand for computers and for Hutchinson's products.