Seagate Technologies (STX), the biggest hard drive maker, announced Wednesday that it was laying off 8% of its workforce, about 3,000 employees.

The Cupertino, Calif.-based company cited economic uncertainty and sagging demand when it unveiled quarterly results. Seagate reported earnings of $0.48 per share, significantly below FactSet consensus expectations of $0.71 per share. Its stock dropped more than 8% in early trading Wednesday.

The company said it had struggled in the latest quarter, amid lockdowns, economic shocks and reduced demand.

"Global economic uncertainties and broad-based customer inventory corrections worsened in the latter stages of the September quarter, and these dynamics are reflected in both near-term industry demand and Seagate's financial performance," Dave Mosley, the company's CEO said in a statement.

Seagate said it expects the layoffs and other restructuring to save an estimated $110 million annually starting the third quarter of 2023.

Despite the economic slowdown, the company said it expects gross margins to improve to ideal levels, with demand eventually correcting.

"We are confident in the secular demand for mass capacity storage driven by the underlying growth in data and believe Seagate is in a great position to capture growth opportunities over the long-term," Mosley said.

Besides economic pressures, the company has also faced scrutiny for its business practices. The company was accused of violating export control laws after taking on Chinese telecom giant Huawei as a client.

The mobile firm is also under an ongoing investigation in the U.S. for allegedly stealing trade secrets. Seagate denied wrongdoing in the case in a Wednesday filing.

Executives at Seagate during an investor call Wednesday said they are not reducing operations in China, which they view as an emerging market.

U.S. lawmakers have introduced crackdowns on business with Chinese companies in recent years over national security concerns. Last month, the Biden administration, pressured by the business community, announced a loosening of some restrictions and emphasizing the need for international standards.