Storage specialist Seagate has announced that it is slashing jobs, letting 14 percent of its global headcount - some 6,500 people - go by the end of its latest financial year.
While Seagate's delayed entry into the solid-state market may have hurt the company in the past, its finances are reasonably rosy: its fourth-quarter report released this week showed revenue of $2.65 billion, above the expected $2.3 billion, having shipped around 37 million hard drives representing a total capacity of 62 exabytes (EB).
'The evolution of mobile and cloud data driven environments continues to define itself as requiring significant amounts of mass storage. HDD devices are where most data bits ultimately reside and our record HDD exabyte shipments in the June quarter, particularly due to enterprise demand, continue to support this thesis,' crowed Steve Luczo, Seagate chair and chief executive, during the earnings call. 'We believe the long-term trend of exabyte storage demand growth exceeding HDD areal density growth remains intact for the foreseeable future.'
Despite better-than-predicted results and the promise of increased demand in the future, though, Seagate is trimming the fat. In addition to restructuring plans announced late last month to include 1,600 job losses, the company has now confirmed that it plans to lay off a further 6,500 staff - concentrated, the company claims, in its manufacturing operations. This will result in a $164 million charge on the company's finance sheet, with plans to have completed the layoffs - representing 14 percent of its global workforce - by the end of its latest financial year.
While Seagate's delayed entry into the solid-state market may have hurt the company in the past, its finances are reasonably rosy: its fourth-quarter report released this week showed revenue of $2.65 billion, above the expected $2.3 billion, having shipped around 37 million hard drives representing a total capacity of 62 exabytes (EB).
'The evolution of mobile and cloud data driven environments continues to define itself as requiring significant amounts of mass storage. HDD devices are where most data bits ultimately reside and our record HDD exabyte shipments in the June quarter, particularly due to enterprise demand, continue to support this thesis,' crowed Steve Luczo, Seagate chair and chief executive, during the earnings call. 'We believe the long-term trend of exabyte storage demand growth exceeding HDD areal density growth remains intact for the foreseeable future.'
Despite better-than-predicted results and the promise of increased demand in the future, though, Seagate is trimming the fat. In addition to restructuring plans announced late last month to include 1,600 job losses, the company has now confirmed that it plans to lay off a further 6,500 staff - concentrated, the company claims, in its manufacturing operations. This will result in a $164 million charge on the company's finance sheet, with plans to have completed the layoffs - representing 14 percent of its global workforce - by the end of its latest financial year.
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October 14 2021 | 15:04
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