Featured insights NEWS TECHNOLOGY

Seagate to cut 6500 jobs by next fiscal year!

Seagate to cut 6500 jobs
Img Src: http://www.thecountrycaller.com/

Seagate has planned to cut 6,500 jobs, by the end of next fiscal year . This counts to  almost 14 per cent of its 46,000-strong workforce, across Asia, Europe, the Middle East and the America. That’s a huge expansion in layoffs compared to the plan Seagate laid out less than two weeks ago. Earlier in the month of June, the company said it would be slashing 1,600 jobs across its international operations owing to a slump in PC sales.

Seagate  is one of the largest market share holders and makers of disk drives. The company has been facing a downfall in the growth graph  due to the decreased demand for personal computers that use its products. The computer makers are instead adopting storage devices based on flash memory chips rather than magnetic disks. This turns out to be the major reason for that has affected Seagate and other drive makers.

One of the company’s spokesman told The Wall Street Journal that the announced job cuts will mainly influence the employees involved in the manufacturing operations. Seagate’s main manufacturing facilities are based in Malaysia and China, with some also in the US and the UK.

But Seagate also cited positive signs about its business Monday. The company, in an announcement that included preliminary financial results for the fourth fiscal quarter ended July 1, said it expects to report revenue of about $2.65 billion, compared to its prior estimate of about $2.3 billion. Seagate shares jumped nearly 13% in after-hours trading.

The company  is expecting a pretax charges of $164 million in fiscal 2017 for the restructuring plan. The company, which expects to report final fourth-quarter results on Aug. 2, estimated that its adjusted gross margin was about 25% in the period—above its forecast of 23%, in part due to cost-containment efforts.

While Seagate hopes to grow revenues by the end of the year, it remains to be seen if the company can innovate enough to stay in the game in the years to come. The advanced faster technologies are winning the battle over  disk-based storage.


About the author

ayushi jain

Add Comment

Click here to post a comment

Your email address will not be published.

Pin It on Pinterest

Share This