The stock is up because it is implied there will be cost containment and cutting

My team was happy that that stock is up this morning but that is not that story that is good for our jobs. Stock is up because it is implied there will be cost containment and cutting. Focus on "profitability and cash" means cutting since they cannot do anything about revenue. From the call transcript.

"We are navigating through these market dynamics with conservatism and managing our business with a focus on profitability and cash flow generation. As we go through this cycle of compressed exabyte demand, we are taking measures to control our costs and capital spending.

We expect total revenues in the March quarter to be in the range of $2.3 billion plus or minus 5%. Total exabyte shipments are forecasted to be 10% to 15% lower sequentially.

We expect non-GAAP gross margins for the March quarter to be at least 26% with the majority of the sequential change related to mix and manufacturing underutilization. This forecast is outside of our long-term margin range of 29% to 33% as we adjust our manufacturing plan to a lower build volume and to keep a lean inventory level. "

Couldn’t agree more with @Xs7oE3m-1xwt . This was well said.

Comment! It's anonymous!

8 replies (most recent on top)

Layoffs has been happening every 6 months since I joined 6 years ago. Why is anyone surprised or worried about them? I am used to it and even prepared for it. Last year I though I was getting Riffed, instead I got a promotion after 5 years of waiting. My advise is to Save for rainy days, explore other opportunities on weekends and nights, but give everything to the company on the woeksays. Maybe it might prove to be not enough to save the company or you but that is the minimum expectation for your employment.

Layoffs are coming and have been happening on an ongoing basis though they do not have cool code names like they used to. If no layoffs coming how about giving us multi year contracts?

I don’t quite get you people. Stock goes down, you are p-ss-d and say layoffs coming. Stock goes up, your p-ss-d and say layoffs coming. Are you just generally dark in life? The world is beautiful, life is short, we are all going to die. Be happy with what you have while you have. If not, go somewhere else and be happy. Just be happy.

id--ts who have seen the light and through the exec BS. No more lies.

id--ts. all of you

Hopefully ValueAct will start cleaning out what's left of the "Old Gaurd" management team. Seriously? What have these clowns done in the last ten years other than misinvest billions of dollars on cloud vaporware, totally misleadings the boat on SSD and shrinking the annual capacity growth rate from 100%+ to sub 10%?

The fumes this place runs on come from DM's crack pipe.

The only reason the stock didn't tank is the dividend is safe thanks to the tens of thousands soon to be former Seagate employees.

watch the stock drop tomorrow when all the insiders can start selling

Just walk over to market research or PLM and ask them about the five year plan. They will tell you that HDD is going to a $5B total annual market (shared with WD and Toshiba). This is before it is adjusted up by DM. No notebook or desktop or mission - all going away. Open your eyes!

Thread regarding Seagate Technology Inc. layoffs

The stock is up because it is implied there will be cost containment and cutting

8 replies (most recent on top)

Post a reply