Laborious drive maker Seagate Expertise mentioned on Wednesday it plans to chop 8% of its international workforce, or about 3,000 staff, citing financial uncertainty and declining demand for its components. “Along with adjusting our manufacturing output, to drive provide self-discipline and pricing stability, we’re implementing a restructuring plan to sustainably decrease prices, together with discount in our international workforce,” Seagate CEO Dave Mosley mentioned on a name with analysts. The restructuring plan was introduced after Seagate reported fiscal first-quarter earnings that missed Wall Avenue expectations for income and earnings per share.
Seagate shares fell greater than 7% throughout buying and selling on Wednesday and are down over 55% up to now in 2022. Mosley added that Seagate’s clients, which embrace cloud suppliers, have a build-up of stock of components as a result of they’re spending much less on computer systems. He mentioned he doesn’t anticipate Seagate’s clients to complete utilizing up their components backlogs within the present quarter. Seagate makes exhausting drives and different components usually utilized in PCs and cloud servers.
Seagate’s layoffs and decrease demand are the most recent signal that demand for PCs and cloud servers is deteriorating after two growth years pushed by the pandemic. On Tuesday, Microsoft, which makes the working system for many PCs, reported that Home windows licensing gross sales dropped 15% on an annual foundation. Microsoft’s cloud enterprise additionally got here up quick versus expectations.
Supply: https://www.cnbc.com/2022/10/26/seagate-will-cut-3000-employees-in-latest-sign-of-major-pc-and-cloud-slowdown.html
