Thread regarding Seagate Technology Inc. layoffs

Quarterly earnings question

With cloud companies booming during Covid, why did see Seagate miss on revenue and earnings? Should we be selling more to support data growth in 5he cloud? I thought cloud products have the highest margin but we were at 27 percent. Anyone know? Thanks

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Post ID: @OP+16b3vehp

6 replies (most recent on top)

I would say seagate springtown will be very busy for the next couple years until the new massive expansion planned for Normandale is complete.
What happens then is unknown.
Millions already spent starting fab 3 in Springtown now stopped.
Employees kept in dark as to why. Time will tell.

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Post ID: @5rxs+16b3vehp

Lots of mixed messages in Seagate Springtown.The third fab construction has been delayed/cancelled. We dont know which it is.Work wise it has never been busier.The amount of work in the fabs is something I have never seen and yet we've been told theres a "softening of the schedule ".We in Seagate Springtown know how devious and secretive the management is here so we will never know the truth.

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Post ID: @3urs+16b3vehp

Stx provided a revenue forecast with a low of $2.1m for q ending in Sept. At that revenue we cannot pay operating expenses and the dividend. There is only one way the CEO knows to come up with the needed $300m...layoffs.

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Post ID: @1thq+16b3vehp

All of net income went to investors.
63m went to layoffs in the quarter.
Accounts Payable jumped to preserve cash i.e. stopped paying bills
What happens when the ceos's strategy of layoffs only to meet investors need for a dividend stops because there is no one left to layoff except a bloated exec team pulling in millions?
September will be ugly to hit wall street expectations, has to be a major layoff.

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Post ID: @qrq+16b3vehp

You are pointing out how the actual financial data does not support the ceos's business thesis. It is the biggest lie in the tech business. Stx has no pricing power, HDD suppliers are in trouble, stx has the worst cost structure in the biz, competition is more innovative, and is betting it all on an even worse cost technology in HAMR. Get used to worse margins. More than half of annual earnings goes to dividends already and with lower margins it will not allow for investment in innovation or business improvement. STX is in a death spiral to support dividend growth.

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Post ID: @nvk+16b3vehp

Poor management, dothill doing very bad, we should sell this useless business.
Lay offs coming much sooner than expected now. Condition deteriorating faster than expected.

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Post ID: @pds+16b3vehp

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