Imminent announcement for one design center and one factory to start shrinking in size. Will happen over the next 2 years. Unknown which ones, how badly, how swiftly.
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Can guess easily. All big guys are in US.
Some advice. Save save save. Save at least a years pay, then save another years pay. If you are over leveraged and driving a Lexus on an 8 year loan you haven’t been paying attention.
Shrink and become an empty building, no work no productivity?
Or you mean close instead.
just close down SFDC .... and move it to MN ... a design center should always be together with ur mfg facility
Sounds like the ceo's optimism has infiltrated this post. Stx will not exist in 2025, forget 2030-2032.
Odds are stx is bought by a nand company and then forced to size appropriately to 1 manufacturing campus, 1 design center, and no silly execs like SVP business excellence. This is the only way it exists profitably. Until then it will continue to weaken during pandemic and borrow money to support bloat. What happens when investors want to exit, they will force a sale.
Original post sounds like a logical end state for Seagate, but this is nowhere close to happening. Try 2030-32, not 2020-22.
These announcements always happen around the time of earnings call to appease investors about poor financial results. so 2 months away if it is accurate.
Post says imminent announcement, if this does not happen in a week or two then call it BS!
Getting tired of fake news on this board.
As the revenue continues to drop and gross margins drop with hamr cost challenges the overhead has to drop. Stx does not need a drive assembly footprint for 70m drives when 20m will do. How many design centers are needed for just a high capacity swimlane. Don't believe the rumors and just use your head.
To me, revenue will be down to $6-7b in a few years with a 20 percent gross margin.with the huge interest and dividend payment I do not see how stx has any r&d.
Must be the same guy who posted bloodbath in Sept. Dismissed.
I think it will come sooner than 2 years. It has to be done for survival. My observation is based on business. Not hate.
I even further guess that they will spin off or cut off asic as well. They can't sustain vlsi cost with 1 design center and 1 factory. With 1dc1f, off the shell asic is more economical. Thus major cut in fw as well.
Stx should have spinned off asic when they announced their 1st complete chip. The asic group could have become a major supplier of hdd asic for other companies as well. Valuation for vlsi would have been a multi billions company. Now it's too late (or much harder) and the division is probably on borderline savings if not a liability already.
Stx will need to transform significantly to stay afloat. Best of luck to them. Hope management makes correct decisions for an American ingenuity flourish.