Storage giant Seagate has announced plans to cut 3,000 jobs as part of cost-cutting measures, about 8% of its international workforce.
This news comes after the company’s revenue – which is one of the most successful in the world hard disk Manufacturers – down 35% to $2.04 billion in the first quarter of fiscal 2023.
However, the company maintains that it remains profitable, posting a profit of $29 million in the three months ended September 30 – although that’s a 94% annual decrease from the $526 million recorded in 2021.
The layoffs come as part of the company’s broader plans to cut costs.
Dave Mosley, CEO of Seagate, told analysts in a call reported by Seagate CEO Dave Mosley: “In addition to adjusting our production output, to drive supply discipline and price stability, we are implementing a restructuring plan to sustainably reduce costs, including reducing Our global workforce. CNBC (Opens in a new tab).
The president told analysts on the call that the measures are expected to save about $110 million annually and are due to be completed by March 2023.
Seagate has not yet given any indication of where the cuts will fall geographically, but the announcement could eventually hit British workers hard.
Seagate employs about 1,400 people in Springtown, Derry Londonderry and Northern Ireland and has been in the area for nearly 25 years.
Local politician Sean Harkin said Belfast Telegraph (Opens in a new tab) Factory workers are “extremely concerned”.
Regardless of the company’s recent performance, shareholders are still poised for their dividend.
The Company’s Board of Directors announced a quarterly cash dividend of $0.70 per share to be paid on January 5, 2023
Declining demand for PCs in general could be one of the main factors in Seagate’s lower revenue.
Experienced shipments of computers all over the world steepest slope Since the analyst firm Gartner began tracking the market in the mid-1990s.
PC shipments totaled 68 million units in the third quarter of 2022, down 19.5% from the third quarter of 2021, according to analyst statistics.