Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.

Seagate cuts 3,000 jobs in restructuring as demand slows

Ian King | Bloomberg

Seagate Technology Holdings Plc, the largest maker of computer hard drives, said it will cut about 3,000 jobs in a restructuring plan aimed at cutting costs amid slowing demand, as big buyers of technology fear a worsening economy. said it was reducing orders.

“Global economic uncertainty and broader customer destocking worsened in the second half of the September quarter, and these dynamics are expected to continue to align with industry demand in the near term,” CEO Dave Mosley said in a statement. This is reflected in both Seagate’s financial performance.”We are committed to taking swift and decisive action in response to current market conditions to enhance long-term profitability, including adjusting production volumes and annual capital spending plans.” I got it.”

Separately, Seagate said it had been indicted by the US Department of Commerce for violating US export regulations by selling hard drives to sanctioned companies. Reuters reported that the entity is Huawei Technologies Co. The company denied breaking any rules.

The backlash from US companies may prove a test of the Biden administration’s tightening of restrictions on technology transfers to China.

“Seagate’s position that Seagate’s HDDs are not subject to the Export Administration Regulations and therefore does not engage in prohibited activities as claimed by the Bureau of Industry and Security,” the company said in its regulatory filings.

The company also announced financial results for the first quarter of the fiscal year that were below analyst expectations. Revenue for the period through Sept. 30 was $2.04 billion, below the average analyst estimate of $2.12 billion, the Fremont, Calif.-based company said in a statement Wednesday. That compares with the average analyst estimate of $2.2 billion. His adjusted earnings per share were 48 cents, well below expectations of 75 cents. The stock has fallen more than 9% in early New York trading and has lost almost half of its value this year.

Seagate, like many of its peers in the computer components industry, has already warned investors that demand is drying up after several quarters of rapid growth. Businesses and government agencies are delaying investments in computer networks, leaving unused parts. In a presentation, the company said that China’s economic weakness, combined with the coronavirus lockdown, weighed on demand, while inflation curbed spending.

Seagate’s announcement is the latest by the tech company to focus on labor costs to deal with spending pressures from a slowing economy and high inflation. Intel Corp. is planning thousands of job cuts, and Meta Platforms Inc. is reorganizing its team and planning its first-ever job cuts. Amazon.com Inc. has frozen corporate hiring in its retail business, while Alphabet Inc.’s Google is laying off Area 120, its internal incubator for new projects.

Mosley said Seagate’s job cuts will amount to about 7.5% of its total workforce and, when fully realized in the third quarter of fiscal year 2023, will translate into annual savings of about $110 million.

Other stories like this bloomberg.com

©2022 Bloomberg LP

https://www.mercurynews.com/2022/10/26/seagate-to-cut-3000-jobs-in-restructuring-as-demand-slows/ Seagate cuts 3,000 jobs in restructuring as demand slows

Related Articles

Back to top button