Employee termination costs

Approximately $60 million of these charges will be cash expenditures. These charges will consist of asset impairment charges of approximately $90 million, employee termination costs of approximately $35 million and other exit costs of approximately $25 million. These actions, which the company anticipates completing by the end of March 2009, are expected to result in total charges of approximately $150 million which will be incurred across the December and March quarters. We are taking these actions in order to strengthen our financial position and enhance the ability of our business to withstand an extended period of depressed demand while continuing to invest in the technologies, products and processes required to assure the continued success of our business, Mr. In order to further reduce costs, Western Digital will reduce headcount by approximately 2500, or 5% worldwide; reduce manufacturing work hours by approximately 20% from reduced use of temporary workers; closure of one of WDs three manufacturing facilities in Thailand; close or dispose of one of the companys two media substrate manufacturing facilities in Malaysia; reduce capital spending for the fiscal year 2009 from $750 million to approximately $500 million.