Where will Seagate get the money? 300 Million USD fine for selling HDs to China.
https://money.usnews.com/investing/news/articles/2023-04-19/exclusive-seagate-settles-with-u-s-for-shipping-1-1-billion-of-hard-drives-to-huawei
30 replies (most recent on top)
I always assumed the two year limit was simply a legal dodge. It makes it harder for plaintiff to win a lawsuit if no email trail exists.
I could never understand how a company that manufacturers storage for the world can only hold our emails for 2 years (max 40,000 employees) but my FREE struggling Yahoo mail still has all my emails from 15 years ago. Pathetic.
Now you know why there are only two years hold on emails. No accountability when the emails went poof.
Our Thayer, San Diego, Florida, and South Africa Sales events funded with Huawei revenue. I feel a little violated.
Who the he-l provided this level of advisement?
CFO with initials GR
All those sales getting commission on an illegal action. Who the he-l provided this level of advisement? They should be fired. And head of sales profiting on commission should be fired. What a load of cr-p. Watch how none responsible get held accountable and instead more rifs and more cost reduction.
Sales team benefited for comisdion on 1.1b worth of HDD to huawei
WHOOPSIE!
from the 10K: "The company (STX) incorrectly interpreted the FDP (Foreign Direct Products) rule to require evaluation of only the last stage of its HDD manufacturing process rather than the entire process."
and: "Two of the three companies capable of making HDDs promptly—and publicly— stated that they had ceased sales to Huawei. The two companies also indicated that they would not sell to Huawei unless or until they received authorization from BIS. Only Seagate continued HDD sales and transactions involving Huawei."
Read the 10K which is available on STX website. It's not a good look for STX.
penalty is $40 per drive over the 1.4M drives sold. OUCH! But on the bright side all those lost gross margin dollars that have to be repaid over the next five years helped to fund stock buy back and dividend... so at least someone benefited from this fiasco. /s
Yeah, this explains all the RIFs. Many or all probably won't get their severance packages now. Bet payday next week gets missed too.
For every dollar on those Huawei drives, 70 cents goes to cover dividend, 30 cents goes to pay fine.
Selling off the private jet sure can pay the for the fine
many culpable leaders here - I want to know if the board was aware of these shenanigans. and remembering some all hands with comments about how we'd crushed it during the pandemic...it is quite shameful. please take down the integrity propaganda and remove if from our login. thank you.
- 1 billion in sales, 300 million in fines. Seagate made the decision to take the risk and accept the slap on the hand later.
""What does the export suspension mean? Is this company done?""
No, it's 5 years of heavy probation and scrutiny. I want to see some heads roll. Those are mentioned in the 8k.
Post from TheLayoff.com
No, it's 5 years of heavy probation and scrutiny. I want to see some heads roll. Those are mentioned in the 8k.
There goes our bonus....
So essentially we gave away a bunch of drives to China without any profit and then some. I mean, how many jobs could this have saved?
Was this why Joan was let go?
All three values need to be replaced. Clearly, our executives cannot demonstrate integrity, innovation, and Inclusion on a daily basis.
Reap what you sow. Doesn't the definition of integrity include the word profit within seagate terms? Crazy. Greener pastures are out there folks.
We could sell Fremont, Longmont, or Shugart to pay off fine.
No way this CEO should be allowed to continue. Plus cut the dividend already.
I am beyond disappointed at Moseley and his sales team. WD and Toshiba played by the rules but Dave felt he could "redefine" the rules.
All employees can contribute $7500 each from their wages to pay this fine.
What does the export suspension mean? Is this company done?
I told you it’s gonna happen. I am part of the finance team that was involved in the negotiation.
$300mio AND 5 years under a suspended 'denial order' - Shame!
8k is already posted
Answer will come tomorrow. The saddest day in company history perhaps.
Business at its Excellence