
Seagate Technology to cut about 6,500 jobs; stock jumps 22% - tosseraccount
http://www.latimes.com/business/la-fi-tn-seagate-job-cuts-20160712-snap-story.html
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vardump
How does this affect Seagate's downwards trending quality?

I got this kind of impression from Backblaze durability statistics, personal
experiences have also been bad lately.

I do remember time when Seagate meant quality, but that ended when they bought
Maxtor.

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kctess5
> "The restructuring is expected to cost the company about $164 million in
> pre-tax charges during fiscal 2017, $82 million of which will be employee
> termination costs"

$82000000/6500 = $12615

Average severance of 12.6k per employee seems rough.

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matt_wulfeck
Maybe if all of the cuts were in the Bay Area. However the article suggests
it's the "manufacturing footprint" in Asia that will be most affected.

Potentially that's not a very bad severance.

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andyjdavis
I read somewhere that Thailand is currently the world's largest hard drive
manufacturer. It is therefore entirely possible that a substantial number of
these job cuts with be in Thailand which definitely has dramatically lower
salaries than the Bay Area.

source on the Thailand and HDs for those that are interested. This article
from 2011 claims that 25% of global HD assembly is in Thailand.
[http://www.ft.com/cms/s/2/f0f9a234-fb33-11e0-8756-00144feab4...](http://www.ft.com/cms/s/2/f0f9a234-fb33-11e0-8756-00144feab49a.html#axzz4EGilmMS5)

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gberger
Why is the stock up following news of a layoff?

(Honest question, I'm clueless about the financial market)

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pmorici
Because it is a cost cutting measure they are assuming that after the layoffs
the company will be selling just as much product but will have 6,500 less
salaries to pay making them more profitable.

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Aelinsaar
Wow, that's a really huge number of jobs; hopefully everyone lands on their
feet.

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vkou
They won't, though.

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thebigspacefuck
If you want to know more, I suggest checking out this site:

[https://www.thelayoff.com/seagate-
technology](https://www.thelayoff.com/seagate-technology)

People at my company had said they don't lay people off. I found otherwise on
thelayoff, so I check it periodically to see if there's anything to worry
about.

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davidf18
It is possible that like Foxconn, they are depending more on robots for their
manufacturing. Perhaps they're preparing themselves to be bought out.

