Can we just cut the dividend already? Maybe just maybe we could get rid of some of our debt if the unrealistically high dividend was brought down to more realistic heights.
As it stands, none of us will see a raise or a promotion for the next decade - if we still actually have a job by then.
Nope, won't cut the dividend. Just be happy you have employment and put aside those thoughts of promotions, ain't gonna happen in this company!
1emr nailed it. The dividend was pumped to historic levels on the heels of an unsustainable profit margin and revenue stream created by the Thai floods which took WD down for awhile. Now they are trapped because lowering the divi will crater the stock. Financially engineering their way out by workforce reduction to maintain the EPS will only go so far until the chickens come home to roost.
1sbt, Recession is not even needed for Seagate to feel the pain. With the interest rate going up, may be 3 more hikes this year and 4 next, interest payment would itself result in negative cash flow as revenues are declining. There is no top line and bottom line growth and not even in the future as the technologies invested for growth are not panning out. Gimmicks with OpEx cut and R&D cut to show good cash flow only works for few quarters. It is the organic growth that counts. I suggest all employees to go through Seagate numbers for last two years. It will kotivate you to start looking for jobs, if you have not already. I am actively searching and have not found one yet.
The purpose of Seagate is to keep the share price pumped up, to make sure the executives annual remuneration is adequate. Actually running a business is secondary.
Look at Seagate debt/equity ratio of near 500. Then read and understand how much risk management has taken with 5 billion in debt. Seagate will go bankrupt quickly in the next recession as cash flow decreases if it comes sooner rather than later At the same time WD is chastised for debt build up. Pot, meet kettle. If you think there will never be another economic downturn or recession than you have nothing to worry about. Good luck and enjoy the last hurrah of the stock price run up and final bonuses before the fall comes!
Good luck finding a decent paid job with Seagate on the resume. That skill you learned on how to make crappy drive would not take you very far in today’s job market.
I know a lot of old people with more than 20 years experience are waiting for the package, younger crowd with less than 5-8 years are carpet bombing their resume and new crowd are nervous but just going with the flow as they would gain industrial experience as their GC is processed. In short, no one is motivated to actually do any meaningful work.
best thing you can do is stay with the sinking ship and then retire.
There is no way you'll have a job in 10 or 5 years. Seagate missed the boat on flash and other chip-based storage. Spinny is NOT winny in the long term. With all the eggs in the wrong basket, those eggs are decomposing and I can smell the hydrogen sulfide fartgas. Or, in more concrete terms: Seagate top management made bad decisions, and those chickens will come home to roost.