Seagate cuts 14% of its workforce due to declining HDD sales

Seagate logoDwindling demand for physical hard drives has already led Seagate to eliminate the jobs of 1,600 employees from its global workforce of 46,000 which spans across Asia, Europe, the Middle East and the Americas.

Now, the company has announced that it is planning to cut another 6,500 jobs or 14 percent of its remaining staff. The employees who have lost their jobs will be let go over the next 12 months and Seagate will end up paying out $164 million as a result.

Seagate cuts 14% of its workforce due to declining HDD sales

The company blames a slowing desktop PC market for declining sales of its hard drives. Flash-based storage, used in laptops and mobile phones, along with the rise of cloud storage solutions have both hit Seagate’s bottom line hard. However, the company’s CEO, Steve Luczo, has tried his best to reassure investors that there is still demand for its physical hard drives.

In a statement on Seagate’s site, Luczo, said: "The evolution of mobile and cloud data driven environments continues to define itself as requiring significant amounts of mass storage. We believe the long-term trend of exabyte storage demand growth exceeding [hard disk drive] areal density growth remains intact for the foreseeable future".

In the past three months, Seagate estimates that it has earned $2.65 billion in revenue with a gross margin of 25 percent. The company will release its full financial figures for 2016 to July 1 on Tuesday, August 2.

Source: Betanews

Tags: HDDs, Seagate

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Consumer group recommends iPhone 8 over anniversary model
 
LTE connections wherever you go and instant waking should come to regular PCs, too
 
That fiction is slowly becoming a reality
 
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
 
Human moderators can help make YouTube a safer place for everyone
 
Google says Progressive Web Apps are the future of app-like webpages
 
All 2018 models to sport the 'notch'
 
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)