In an interview with Reuters, Brian Dexheimer, president of the Seagate's consumer division, said the company is planning to cut its U.S. workforce by 10 percent.

The company will announce a restructuring program later this month, following a sharp drop in demand toward the end of 2008. Currently Segate employs 54,000, and most of its operations and employees are based in the States.

Dexheimer says the company is preparing for a "tough environment" over the next 12 months, and iSuppli is also forecasting a serious industry wide decline in storage demand throughout 2009.

The restructuring will also affect Seagate's R&D budget.

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