Thread regarding Western Digital Corp. layoffs

Are you really that naive?

Are there seriously people working at Western Digital who believe we'll be safe until next month, not to mention next year? Have you not been paying attention? Yes, maybe there will be no huge layoff rounds, but small layoffs have been happening nearly on weekly bases for months now.

Two people here, three people there... And there is no indication this is going to stop.

So if you want to believe you are safe, go ahead. I'll be searching for a new job in the meantime before the job market becomes over-saturated with laid off WD employees.

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Post ID: @OP+10kVyq0f

4 replies (most recent on top)

One does not need an MBA to check the simple number.

WDC debt
$4.834B due 2/27/23
$2.425B did 2/27/23
$1.1B due 2/1/24
$2.3B due 2/15/26

Credit revolver line $2.25B (expire 2/27/23). How the hell will this credit line help any way in terms of liquidity strength to help the payoff or refinance of $7.26B peak debt due on the same date?

Post ID: @1rrk+10kVyq0f

Not sure what Univ of Chicago business school teaches in presenting cash strength.

Post ID: @1jev+10kVyq0f

WD is in dire cash situation and layoffs are inevitable.

In earning some call, the company boasted “strong” liquidity position $5.7B by including revolving credit line, just to make it sound line a number close to 50% of debt ($11B). If WDC draws on revolving credit, the total debit will go up by the amount of credit line draw.

WD’s real cash amount is about $3.46B with about $11B debt. WD burned $1.5 cash without major pay down in debt in the last 12 months. Seagate increase cash balance to from $1.85 to $2.22 and pay down $0.5B debit while repurchase $0.96B stock in the last 12 months.

WD has no way out but to cut expenses significantly. The debt load and capital spending (semiconductor) are the biggest burden.

Post ID: @1mot+10kVyq0f

They don't necessarily think that they're safe. It's hard to walk away from 30-60 days paid time off (WARN) plus severance based on years with the company. Most people I know tell me 'I am waiting for my package'.

Post ID: @jjl+10kVyq0f

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