Difficult time for Seagate, 3,000 employees laid off

Seagate will lay off 3,000 people: The company, one of the largest in the world dealing with the production of hard disks and data storage solutions on magnetic media, made its announcement in the past few hours on the occasion of the presentation of its financial results for the last quarter, citing a moment of global economic difficulty. This number represents about 8% of Seagate’s total workforce.

Global economic uncertainties and large customer inventor corrections worsened in the later stages of the September quarter, and these dynamics are reflected in both near-term industry demand and Seagate’s financial performance. We have implemented rapid and decisive actions to respond to current market conditions and improve our profitability, including adjusting our production and annual spending plan, and announcing a restructuring plan that will ensure significant cost reductions. Capability solutions designed to drive our future growth.

Although it came from a period of very significant growth, major tech companies are blaming this waning phase of the COVID-19 pandemic. Right now, uninspiring quarterly reports are multiplying (we only saw Samsung this morning, for example). Since the beginning of the year, many technology companies, both on the hardware and software/services side, have announced rapid layoffs. Even Microsoft has said it will leave about 1,000 people at home, and Meta has promised to cut staff and halt new hires next year.

Seagate reported revenue of $2.035 billion, a significant contraction from $3.1 billion in the same period last year. Net profit shrank to just $29 million, up from $526 million last year. Layoffs are expected to take place mostly during this quarter. The company expects to save about $110 million Throughout the new fiscal year (which began for Seagate in July).

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