Confirmed RIF of 3000.
No dates specified but employees to be informed 'in coming weeks'.
16 replies (most recent on top)
GoneTooSoon, your "friend" running SAP is wrong. Some in SAP aren't employee (contractors are one of several types). There are not 44,150 employees.
Ah Seagate. You old Employer-of-Choice, you. Don't ever change. I did my 20 plus years of 60 plus hours per week for you. Ah the memories of all those reviews! A "3" this year! a three last year! Regardless of performance! Three cheers for Seagate!
@ezo+1joJq4XB
This is a cost cutting RIF. Expect higher paid workers to be let go. IOW older / longer seniority folks under Director. A new engineer can be hired for less $ than the older/experienced Engr. Directors and up get special retirement packages.
@Corporate Warrior
Sorry, like your personal information that is confidential and cannot be shared outside of the company. ;)
I have a friend with access to SAP that pulled the data.
@GoneTooSoon, interesting, where are you getting this data on how many employees are hired and what length they have served?
STX just increased debt $600m to get to $700m in cash. Borrowing to pay dividend. Run, people, run. The company still bought back 5m shares last quarter to help the investors
"What day is the RIF in the US?"
Now sure about the day of this one, but I think this is the start of ongoing RIFs for the next several years. I saw this coming in April 2020 with two weeks to flatten the curve. LOL! How'd that work out?
@bxc also the buyback is 'paused', that was $408m last Q.
Regarding lending remember the credit agreement is 4x covenant.
Hope they clean the house at the executive level. Lot of big spending the last 2 years on dream software that never worked. Too bad. It was a great idea. Meantime, folks ran away from that program when it failed. For once, clean up the house, the manager working for the manager does not work. Glad I pulled the plug this year and retired out.
$110m is minimum guidance, they have to do more. STX cannot pay $150M per q in dividends at $1.8B in revenue per quarter. Cash is down to $700m and no one will lend the company money. The company has also stopped paying its suppliers based on a dpo of 100 days. 2 options, stop dividend or cut deep. We know the CEOs preference.
What day is the RIF in the US?
GTS, your active is 5k high. Look for what you did wrong.
Run-rate $110m div 3,000 equals $37k per. That implies things.
Anyone notice the revenue forecast for next quarter? $1.8B
The ship is sinking fast. I would expect Sr. Dir, Dir, and VPs are going bye bye. See ya Business Excellence!
Wonder how they select
Interesting math!
SAP shows 44,150 active employees.
Reduction of 3,000 is 6.8%.
8% is 3,532 to be RIFed.
2,800 employees were hired in the last year!
5,500 employees have served 25+ terms.
On October 24, 2022, the Company's Board of Directors approved and committed to a restructuring plan (the "Plan") to reduce its cost structure to better align the Company's operational needs to current economic conditions while continuing to support the long-term business strategy. The Plan includes reducing its worldwide headcount by approximately 3,000 employees, or 8% of the global workforce, along with other cost saving measures.
The Plan, which the Company expects to be substantially completed by the end of the fiscal second quarter 2023, is expected to result in total pre-tax charges between $60 million and $70 million. The charges are expected to be primarily cash-based and consist of employee severance and other one-time termination benefits.
The Company expects to realize run-rate savings of approximately $110 million on an annualized basis starting in the fiscal third quarter 2023.