Don't know the full scope yet, but two layoffs that I know of at our tiny site and the last minute notice all-hands suggest a lot more. Sorry to those boned again by WD. Unfortunately it will never stop.
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GE was dragged into hell by its massive debt.
GE has $60B debt with $120B revenue
WD has $10+B debt with $16-17B revenue
Debt interest basically wiped out 30% of profit and take away investment into new technology and products.
The only way out is to be acquired.
The old saying: don’t buy a business that you don’t know how to run.
In SanDisk case, there is no expertise in SanDisk or legacy WD side in how to run a semi fab. Basically the fab operation was by Toshiba while WD chips in portion of capital expenditure. In return, WD got “at-cost” wafers.
The cost is not controlled by WD.
Sad to see WD lost the HDD business so much as management lost focus on it. it is obviously a layman in the other area WD is trying to make effort on. Milligan finally took the bad result as a retirement.
It seems like the site at 1710 Automation Parkway is closed and the building is for sale.
Did not see WARN filed. I guess it is a few numbers in each site. The stock price is going up and I guess things are getting better now.
Milpitas hit yesterday
A few at Irvine. Mid management (Sr. manager/Director levels).
H sites/teams definately impacted. Number is up to 7 now, at least 2 are legacy H players. Chandler and Milpitas for sure, but I'm sure there are more. As is the case every time, we lost some good ones. Breaks my heart. I'm sure we'll hear the BS speach tomorrow about "we are all professionals" and need to "step up" and "get it done". Pretty soon there won't be anyone left to get it done. New jobs posted daily in Taiwan and Penang BTW
which sites? WD buys a new small company a few days ago and dumped some guys in old companies soon. Not sure if W and H sites will be impacted