Why Costco is selling seagate storage drives 1/3 of the price? New product coming or lay off coming? I saw some orders for pink color paper sheets last month. Still I did not see card board boxes. Not looking good though especially for LCO location.
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Cash flow issues - gotta move that product. That's the reason we discount stuff, including Costco. The drives are not in high demand and we need to get rid of as many parts as possible. Now, watch for layoffs (margin pressures and decline in sales)
They are going to close Shakopee and need room at normandale for some plm positions so a net loss of 500 jobs in Minnesota.
There's jobs in derry because upper management view seagate as a jobs program there.
Too bad HAMR isn't having the same visible effects as climate change has the past few years.
Low yields require more wafer dgr, more people
plenty of new jobs in Seagate derry
all good in seaget plenty of ongoing recruitment and more operators starting
For the same reason any company has a liquidation sale. It happens when they are desperate for bringing in more cash and reducing inventory that isn't moving fast enough. Desperation to make the quarter numbers look slightly less catastrophic. Don't worry, HAMR is always 3 years out just like the end of the world due to climate change has been 10 years out since year 2000 and running out of oil/coal has been 10 years out since the early 1970's. Some day, they will be correct.
Because there is low demand for the drives and STX has to get rid of the parts. It is a fire sale. Next quarter, STX will just produce less, get rid of staff and lean up the costs to make a few pennies per drive. The days of 30% gross margin are gone.