Lay off this week just a start. 10% lay off is coming in 2 months. Dothill will be impacted in the next lay off.
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You can't say STX cash flow would reward anyone for buying the company. Let's say the company is bought for $15b and then the buyer has to assume $5B in debt, so a total of $20B to buy STX. You are saying a company would spend $20B for a Max of $1B in cash flow per year during a good year, and, oh yeah, the market for HDD is going to be smaller and there will be less cash flow. How does this math work?
Hiring freeze happening?
Its called Debt to Market Cap Ratio and Seagate's isn't bad at all. Micron could easily buy Seagate for study (but declining) cash flow while SSD and Nand prices drop and the SSD market consolidates.
I am in the Technolody dept in Cup... will i be safe??? and be able to move to Fremont??
Debt is a poison pill for M&A, but I could see Seagate eventually an small subsidiary of another company. You can still buy floppy disks on Amazon, so there will be a long drop off for HDD, but drop off it will. Anybody who still thinks HDD is going to grow is nuts.
2jdj - Seagate's market cap has nothing to do with paying off debt. The stock is held by institutions and individual investor's, not the corporation. Do you think Seagate would simply issue a bunch of new shares and sell them to raise the money? That would crash the stock price and obligate them to pay more in dividends. Of course, Seagate could cut the dividend, but that would send the stock even lower. Seagate's position is somewhat similar to the Federal government, which has a debt it will never pay off. With steadily declining revenues due to the slow obsolescence of disk drives, this is a given.
Nobody except movie stars, other multi-millionaires, and immigrants want to live in California. Housing is too expensive and tech workers are leaving in droves. It is becoming next India, over crowded , in debt, and poverty for the masses while corporate America just uses cheap H1-B visa workers or ships everything overseas.
Cup will depend on your job and need for it to be in expensive California. Many will be offered the same job at one of the non California sites and pay adjusted to the new location. Of course you will say no and Seagate gets to pay less and not pay severance for laying you off. If you are a support function or ops or IT or legal or finance the job will not be in California.
With Cup closure being imminent, will there be a layoff from the workforce from Cup???
Buy stx for it cash flow? That math does not work. Stx will be half its size in 5 years and no one will want to assume all of its debt.
Seagate cannot pay off its debt today. Cash is not market cap! Within 4 years this debt is due and no one will give this company a loan with hamr not working, margins in toilet, NAND taking over all segments...
I have a love-hate relationship with this website. I love getting some inside information but I really love how dumb most of the posters are. Debt? Seagate's debt is nothing compared to our market cap. We could pay off that debt right now, but some debt is good. As for Micron, they are literally 4 times larger than us and could buy us in a heartbeat if they wanted free cash flow from HDD until we do become obsolete. WD on the other hand, now thats some debt ratio that I would be scared to have personally. But who am I? It's not like the CFO or anyone from his team posts on this website. I'm probably just Ravi trying to pump up my stock.
Micron has better things to do with it's cash than buy a washed up company that's loaded with debt.
1978-2011 Scotts Valley
2011-2020 Cupertino
2020-2021 Fremont
2021 RIP Seagate
2021 Welcome Seagate Digital a Mircon subsidiary
The move has already started. Not sure when it has to be fully vacant
When will cup move occur ???
Cup is combining with FRC, a ~30km move.
Cup closure has been announced. Closing headquarters is never good regardless of spin machine talking points
how true is the news of Cup closure???
Must be a big revenue and profit margin drop in store. The top sales executive looked at the numbers and forecasts and promptly left the company. That can't be a sign of good things to come. The whole economy is pretty much dropping off a cliff right now as most people continue along in complete clueless bliss. I think we will be losing another design center in 2020. Not only will Seagate be contending with SSD eating more HDD revenue, but tanking economy will drop TAM down well. Strap in and enjoy the ride down.
Also with the Cup closure all of those people need to fit in to Fre. This leads to 200 ppl without a desk - expct reductions.