Thread regarding Seagate Technology Inc. layoffs

It’s likely people have to leave without severance package, if layoff comes again. This will be clear in 1 week. Consider what is happening in other big companies, the chance for layoff is high, although the number of affected employees is low.

Talk to my boss to put my name for the next phase of RIF, boss reply: don't you think we still got $$$ to pay for severance??😡😡😕😕🥲🥲

Case 1: HAMR is successful -> No more big engineering resources are needed -> Layoff.
Case 2: HAMR fails -> No money -> Layoff.

Don't worry, HAMR will save the dividend.

Another losing quarter of at least $0.1 and 4 consecutive losses.
No money to pay for the severance package after giving dividend and no more building/land to sell and lease back.
Conclusion is no layoff at this round!
No worry, Seagators!

Any news for Jan 24? Anything will happen? This is not a good year for employees

2020: Layoffs
2021: Layoffs
2023: Layoffs
2024: Layoffs

Flipping math, I knew 6 months didn’t seem right but I went with anyway. Still a Seagate employee though, so I got that going for me.

Any possibility of Chapter 11 in 2024?

Shakopee building sale equals only 3 weeks of dividend payments.

SKH + LCO sales are just shy of one quarter’s dividend.

I think 8001 E. Bloomington Freeway was the old TCO building before they moved to Shakopee. So STX already had a relationship with that land holding company.

Unless my math is off the Shakopee sale will buy Heavy D and the Gang a whole 6 months of dividend payments. We are fresh out of buildings to sell but management is super upbeat about HAMR Sales in the next year. We should be tip top in no time.

Full Article since behind paywall

Seagate strikes $36 million sale-leaseback deal for Shakopee facility.

Seagate Technology has sold its nearly 400,000-square-foot facility in Shakopee for $36 million in a sale-leaseback deal.

San Diego, California-based CIRE Equity purchased the industrial-flex building, located at 1280 Disc Drive, in a deal that closed Dec. 17, according to a public real estate filing with the Minnesota Department of Revenue.

Seagate, the Dublin-based computer hard drive maker, will be a tenant with a 10-year lease, the public filing shows. Seagate declined to comment on the sale.

The deal comes after Seagate yo-yoed for the past few years on whether it would sell the facility.

In 2020, Seagate announced it would consolidate its Minnesota operations into its Normandale facility in Bloomington, at 7801 Computer Drive, by selling its Shakopee facility. But two years later, it decided to keep that facility and expand its Bloomington facility with a nearly 81,000-square-foot addition.

Seagate (NASDAQ: STX) has also has been making real estate moves nationally that have included similar sale-leasebacks. That was the case for its U.S. headquarters in Fremont, California, that it sold in May and a 40.5-acre campus in Longmont, Colorado, that the company sold in July. In both cases, Seagate signed on to a 10-year lease term.

Leaseback deals offer companies the ability to free up cash tied up in real estate without needing to move their operations, Silicon Valley Business Journal reported. But the downside is they now need to pay a monthly rent.

The buyer, real estate investment firm CIRE Equity, has invested in Minnesota before. Its local holdings have included two other industrial-flex facilities, including a 261,805-square-foot warehouse in Co-n Rapids at 8840 Evergreen Blvd. and a 122,177-square-foot building located at 8001 E. Bloomington Freeway in Bloomington.

The Twin Cities metro offers a favorable long-term outlook and opportunity for appreciation, said Benjamin Choo, director of financial analysis at CIRE Equity.

Vicki Keenan, of Cresa, represented the seller on the deal

Ahh, so now they can bump the dividend another nickel!

Seagate strikes $36 million sale-leaseback deal for Shakopee facility per the article by Caitlin Anderson – Reporter, Minneapolis / St. Paul Business Journal
Dec 29, 2023