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Seagate's stock soars as it slashes headcounts

A neon hard drive sculpture is displayed in the lobby of Seagate headquarters in Scotts Valley, California.
Tony Avelar | Bloomberg | Getty Images
A neon hard drive sculpture is displayed in the lobby of Seagate headquarters in Scotts Valley, California.

Shares of Seagate Technology swelled almost 22 percent after the company announced a restructuring plan that includes 6,500 job cuts by the end of fiscal year 2017.

The plan will help the data storage company target adjusted product gross margins of 27 percent to 32 percent, the company said. Seagate also announced preliminary fourth-quarter and full-year results.

Seagate expects to report revenue of approximately $2.65 billion, and an adjusted gross margin of 25.8 percent for the fiscal fourth quarter. Analysts had expected revenue of $2.56 billion, according to a Thomson Reuters consensus estimate.

"Seagate will continue to evolve its product offering, technology investment and manufacturing footprint to best serve our customers with the world's most advanced and cost advantaged HDD [hard drive] products," CEO Steve Luczo said in a statement.