Thursday July 14, 2016

Seagate Laying Off Over 8,000 Employees To Lower Costs

I'm not sure what happened to Seagate saying it was laying off 1,600 employees just two weeks ago (here) but, according to the company's latest report, it is now adding an additional 6,500 workers to that list by the end of fiscal year 2017.

In addition to the Company’s restructuring actions announced June 29, 2016, the Company announced today an additional restructuring plan for continued consolidation of its global footprint across Asia, EMEA and the Americas. The plan includes reducing the Company’s global headcount by approximately 6,500 employees, or 14% of its global headcount by the end of fiscal year 2017. The total pretax charges for the plan will be approximately $164 million in fiscal year 2017. The restructuring activities and global footprint consolidation underway should enable the Company to be operating within its targeted Non-GAAP product gross margin range of 27-32% by the December 2016 quarter.

Comments