The Star Wars Emperor doppelgänger told employees to keep working hard and bend over today after the earnings call. The bonus is canceled, 401k match is halted, and more cuts are coming. SVPs are taking some pay cut. Big deal!
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I wish the company was more up front of the 20% 401 that was promissed each year employees some think they are going to get it some dont I dont care anymore poorly done good job WD
Just as we reached a100% match canceled
sold on a bad stock program and a company match that was promised stoped lost 140,000 I wish I dint trust them as stayed with old retirement plan not stock and a scam of a promised 20% per yr match scam to sell its bad stock
20 % Mach per yr match I bought 140,000 of WD stock that never dose any good at 5 yr 80 going on 100% canceled lost 140,000 and stuck with bad stock now the lay off
The workers that lost big by the 20 % per year company’s match at end of service promised
4 1/2 years ago this year 100% match 150,000 I lost to that match and had to buy poor performing stock scamed .
Beating a dead horse:
To persist or continue far beyond any purpose, interest or reason.
2012: 650 Mio HDD made/ year WW
WD+ HGST ~ 105 000 employees
2022: 150 Mio HDD made/year WW
WD+HGST+SD= 650000 or WD+HGST ~ 60K
But 105K(2012) employee* 150MioDrives (2022)/650 Mio Drives (2012)= 25K employee(2023)
So if workers make the same number of drives then one should have just 25K employees left. Is there something wrong with my math? Like that we make now more heads and disks per drive...
In the last 10 years more automation efficiency -> even less employees should me needed.
https://www.statista.com/statistics/398951/global-shipment-figures-for-hard-disk-drives/
Well at least our sti and 401k match money was well spent on rebranding in 2022, and we got to pick our new pronouns. I’m sure they won’t discriminate by our chosen pronouns.
The ELT is so worried about OPEX, but have no idea the big expense that is on the horizon. Let's just say it will be worth the wait to see it unfold! I will give you a hint - the retirement option is smoke and mirrors so they can continue to target all the older workers with the hope this gives them a get out of jail card when the class action that is forming comes knocking on their door. #karma #legaldreamteam #keepdiggingabiggerhole #thesequelisalwaysbetter
"management knows well enough not to fire talent."
The trouble is that in my experience the opposite happened. Often the people, who did great work were fired, and then people, who talk about it and recycle or have "friends" stay.
When I said i was neither a fan boy nor a bootlicker, I meant that I came onboard during the previous management and I have been closely watching what had transpired since then. Everyone is quick to blame. The fact is they will weed out those who have not much to offer. If you do your work and keep your head down, chances are you will get through this unscathed.
Right now announcing layoffs is trendy… Zuckerberg utters three words and stock jumps. We don’t carry the same charismatic clout.
It is what it is, management knows well enough not to fire talent.
cash is king, oh, right, cash king gone
Executives are dodging responsibility, especially in tech, and especially at WD, for tactical blunders or strategic decisions assuming pandemic fueled success would not fade away. This hubris and arrogance is crashing down upon them, but it’s the employees feeling the pain. The executives who participated in these decisions face no meaningful consequences, but praise for their swift action to cut costs.
@6jrf+1kXO9HcH to state that you’re not a bootlicker or a fan boy makes it so
Don't think you can compare to Intel's plan as same results since Intel did protect junior ones from salary cuts or minimize the impact to them.
A CEO without proper industry or educational background is like a cat doing herding so stop defending DG and his buddies.
Let’s face reality. WD bought HGST in a last minute deal to patch an otherwise old rusty sinking ship. SanDisk was acquired because somebody somewhere saw the writing on the wall and acted on it when the opportunity arose. That said, at the time, it was a couple of great moves that gave the company a sh-t ton of tech. I don’t at all feel sorry for those who were cut or decided to leave because of the turnover. Full disclosure, I am not a bootlicker nor am I a fanboy.
I appreciate that the current management is taking pay cuts and forcing everyone to take a week-long furlough to minimize layoffs as much as possible. DG even said that announcing layoffs is bad for business. Paired with the inevitable spin-off, it will be interesting to see how this all plays out for all parties.
Personally, for me, this company has been great for my work life balance ever since Covid. And if i do get laid off, and actually I have to do work that is worthy of my potential, then i better get my package first.
With regards to California employees, do they have to give each specific employee a 2-month notice that they will be laid off, or does the recent company-wide email warning of layoffs satisfy the WARN act?
So is the 401K match canceled or possibly only delayed?
For example at some companies, 401K match is paid end of year, so that if someone leaves, does not receive it.
@Doraemon with the weak gross margin forecast expect swift action this quarter
"David Goeckler can't save the damage by ex-CEO. The company lost the best moment to be saved: it should veto the merge of sandisk deal . A lot legacy WDC employees were forced to leave after exCEO took over , and this is why the voice to blame David Goeckler is dominant here"
Nice of DG's mom to weigh in with her support. This ELT is terrible and is focused solely on their own wallets. No wonder they are no longer at Cisco or anywhere else. This once proud company is a joke and the BOD are ignorant clowns to let this continue. Oh right - they are getting serious comp too...
Any ideas when is the next wave coming?
@4jil+1kXO9HcH Any specific departments that you think might have low impact?
To respond to a few messages in this thread...
- While it would have been easier for WD to just follow Intel's MO and just reduce everyone's pay by 5% for the rest of the fiscal year, they chose to furlough people for a week. The net results is the same and there is absolutely no legal impediment.
- The WARN act is toothless. WD (and its predecessors) just have to keep you on the payroll for 60 days after they lay you off and all is legal. In California, WD has typically given people notice of a layoff and told them that their last official day of work is 60 days in the future. However, they are rarely asked to come to work through that day.
- In case you thought otherwise, there is absolutely layoffs coming in the next few months. In some orgs, they are waiting to see how many people take the buyout before making plans. In my org we are making a list of employees to be let go if too few people take a buyout. The company has said they want non-GAAP opex to be reduced from $659M per quarter to $600M per quarter by the end of the fiscal year (June 30). Staff reduction will definitely be a piece of this.
20% of salary. What does that mean when you have this coming and you don’t have to do anything but stay out of jail for it?
The quote below is from this SEC filing....
https://investor.wdc.com/node/24221/html#d340008dex101.htm
Retention Awards
Mr. Goeckeler’s retention award is for a number of restricted stock units of the Company equal in value to $5,000,000 in the aggregate (the “CEO Retention Award”). The first 30% of the CEO Retention Award will vest on June 15, 2023, and the remaining 70% will vest on June 15, 2024, in each case subject to Mr. Goeckeler’s continuous service from the grant date through each applicable vesting date. The Committee approved the grant of one-time retention awards to the other named executive officers of the Company for a number of restricted stock units equal in aggregate value to the following amounts: Wissam G. Jabre ($4,000,000), Srinivasan Sivaram ($4,000,000), Michael C. Ray ($3,000,000) and Robert W. Soderbery ($1,000,000). The retention awards granted to these named executive officers will vest in two equal annual installments on June 15, 2023 and June 15, 2024, respectively, in each case subject to the applicable executive’s continuous service from the grant date through each applicable vesting date.
We should poach STX star player BS Teh to steer our broken ship
@3kwo+1kXO9HcH I had thought employees need to be notified if they personally will be affected by the layoff. Kind of vague that they can just say "there will be layoffs" in X days/ months.
yes, the email satisfies the WARN Act
Does the email sent out to employees count at the 60-day notice for the WARN act?
Do not serve up that all-hands strength of our portfolio and go to market engine propaganda, or serve up inventory digestion and subdued China demand excuses. Serve up the truth about what got us here.! You (CEO& GMs) asked us to stay focused, we did!! Time stop the propaganda machine and speak truth bc we earned it!
The only people hurting from this are the employees. 20% salary cut? What a joke! They all get paid with stock-based compensation. I bet the CEO will still make millions of dollars this year while we lose out on our bonuses and 401(k) match. Way to keep up employee morale!
Yes, it was a bad quarter. For everybody. But read the transcripts. WD lost share to STX on HDDs, and lost share to the other 4 Flash competitors in growth segments. When you lose share, you can't blame anybody but yourself. David and his team should have retooled and invested in key areas but they were too busy congratulating themselves.
: @1bam ex-CEO fired has it improved? Suspended 401K matches, unpaid time off, $900M cash infusion. It’s worse! GMs accountable for profitability, failing.
Get out while you can!
ex-CEO was fired already. It does not only fire the player only
the coaches fail and fire the players; fire a few coaches too
David Goeckler can't save the damage by ex-CEO. The company lost the best moment to be saved: it should veto the merge of sandisk deal . A lot legacy WDC employees were forced to leave after exCEO took over , and this is why the voice to blame David Goeckler is dominant here .
To be fair, we had a terrible, horrible, bad, no good quarter. The only that is worse is the guidance of the next quarter … I haven’t seen anything like that.
Time to let the BOD know what we as shareholders think of DG. Send letters to Michael Ray. He is legally obligated to send to BOD. Address to Michael Ray attention
He is in Irvine office! Time for a little truth to power. You have a voice use it! I am. The BOD will hear exactly what has been going on on here for the past 3 long and painful years with this disastrous ELT. All of them should be fired. No Parachutes. DG has stolen over $40M since he started I March of 2020! Time to stop blaming past leadership for this disaster. 3 years and nothing! Lynne Cox Christine, Rob, the clown over HDD that is f$%%ing clueless. Jerry K trying to get rid of older sales teams...ENOUGH! I guess there is a silver lining. we have a new logo! That will surely save this co.pany! Hallelujah!
March 13 to 18, we'll stay home, no pay!!! Better work for the government, even when you can sc--w up, you'll put in administrative paid leave.
@1udt 401k match cuts and unpaid time the price for activist investor $900M
Things not so great at Intel either
https://twitter.com/grdecter/status/1620615105376567300?s=46&t=6Z9l_XDi_f_y8vf-D5iA6Q
pay reductions didn’t go low enough, once again a miscalculation of too little