Quantum hard disk drive manufacturing group is to shed 800 jobs worldwide, in a restructuring process aimed at reducing costs in order to penetrate the low-cost PC market.

As low cost machines seem to be the dominant trend in the Windows-using Intel world, Quantum reasons that this economy is necessary in order to survive in the changing, pre-millennial market-place.

John Gannon, president of the hard disk group says: "No one is making any money in the disk drive market today." After recent rallies, share prices in this industry sector are falling in value – due to of the recent price-cutting PC wars and the resultant decline in profits. Quantum's high-end disk drive business should remain largely unaffected by this move.

All these developments follow hot on the heel of Gannon's statement that: "Our commitment to the desktop drive business is unwavering. This market represents a high-volume, high-growth opportunity where we are the clear leader, and our execution in it has never been better. We have a leading position at all of the top 10 PC OEMs, and we are the leading supplier of consumer electronics storage devices at a time when that market is positioned for rapid growth. The restructuring announced today will help position our desktop business for continued, long-term success."