Thread regarding Seagate Technology Inc. layoffs

Today's SEC filing - math

600 person reduction yields $90M annual savings - that's $150k per reduction.

Severence pay $83k per person

Clearly some experienced folks leaving.

Here's the filing dated today ( their words!). :

Item 2.05 Costs Associated with Exit or Disposal Activities

On July 25, 2017, the Company committed to an additional restructuring plan (the “Plan”) to reduce its cost structure. Pursuant to the Plan, the Company intends to reduce its global headcount by approximately 600 employees. This action, which the Company expects to be substantially completed by the end of the first quarter of fiscal year 2018, is expected to result in total pre-tax charges of approximately $50 million, primarily in the first quarter of fiscal year 2018. The majority of the charges will be comprised of cash expenditures on severance and employee-related costs. The savings generated from the Plan are expected to be recognized beginning in the first quarter of fiscal year 2018 and will represent approximately $90 million in savings on an annual run rate basis.

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| 2541 views | | 5 replies (last July 26, 2017) | Reply
Post ID: @OP+OsRgdSz

5 replies (most recent on top)

Isn't Shakopee down to about 600 people? With no products, no assembly lines or real work to do why keep the place open?

Consolidate the few people that are left their after today's RIF up to NRM/Bloomington and let everyone move on with their lives.

At any rate, what happens today is just the first round.

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Post ID: @ycn+OsRgdSz

49 - elementary school

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Post ID: @tyx+OsRgdSz

49

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Post ID: @yhw+OsRgdSz

The math makes complete sense if the bulk of those 600 are US-based and/or long time employees.

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Post ID: @hvh+OsRgdSz

That's a lot based only on a headcount. I'd have to imagine they'll be consolidating sites or something more substantial to save that much dough

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Post ID: @kap+OsRgdSz

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