Western Digital is the latest company hit by the economic slowdown to announce a revised revenue outlook - and staff cuts.

The storage company says demand for hard drives in the December quarter is significantly below the expectations outlined in the company's original revenue guidance range.

Due to this, and the fact that industry pricing is also "significantly more competitive than forecasted", WD now expects revenue for the December quarter to be in the range of $1.7 billion to $1.8 billion.

As well as temporarily halting the majority of its manufacturing operations from 20 December through 1 January , 2009, WD says that senior execs will see reductions in "compensation" and 2500 people - around 5% of the company's workforce - will be made redundant.

In addition, WD is to close premises in Thailand and possibly Malaysia too and reduce spending in 2009. All these measures are hoped to add up to a saving of $150 million.