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Miserable sales figures: Seagate fires 3000 employees

Things are not going well at Seagate. The world market leader in hard disk production must now part with 3000 employees due to slumped sales.

Huge drop in sales

A look at Seagate’s sales figures turns out to be far more sobering this year than in previous years. For example, the company sold several million fewer HDDs this summer than it did in previous quarters. Compared to the second quarter of 2022, Seagate experienced a 23 percent drop in sales. A look at the summer of 2021 is even worse, as sales plummeted by as much as 35 percent in a direct comparison. The sales misery naturally also resulted in a drop in profits. Profits were 89 percent lower than in the second quarter of 2022, and the manufacturer now has to pull the ripcord to avoid economic difficulties. Thus, the miserable quarterly figures of the summer lead to the fact that one would now have to part with 8 percent of the employees, according to company information.

Also of interest: Semiconductor shortage: Russia sources defective chips from China.

Seagate employees fear for their jobs

Panic is now likely to have set in on the part of the workforce. After all, the problem of poor sales figures will not be solved too quickly. In this area, however, major problems with supply chains and chip technology are likely to be largely to blame. These are not only lacking in the construction of hard disks. Important buyers like PC hobbyists or console gamers often have no use for an HDD at all due to the lack of hardware availability. Given the ongoing chip crisis, which could be further fueled by a possible Taiwan conflict, this problem is unlikely to go away anytime soon. Currently, 37,500 people work for the storage media expert. After the company has parted with the targeted 8 percent, henceforth 34,500 people should still work at the manufacturer.

With the dismissals, Seagate will temporarily face very high costs once again. It is assumed that the company will have to pay a maximum of 70 million US dollars in severance payments, for example. Seagate can only hope that the employees will be cooperative. Otherwise, costs for legal support could be added. Consequently, the figures for the current quarter (October to December 2022) are likely to be even worse than they already were in the summer. Subsequently, Seagate hopes for an improvement from 2023. According to the company’s own information, it should be able to save almost 110 million US dollars in the course of the layoffs. We can only hope that the rest of the world market recovers so that the company can regain its old strength.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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Things are not going well at Seagate. The world market leader in hard disk production must now part with 3000 employees due to slumped sales. Huge drop in sales A look at Seagate’s sales figures turns out to be far more sobering this year than in previous years. For example, the company sold several million … (Weiterlesen...)

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