In January of this year, Seagate announced that it will shut down its Suzhou plant in China, with more than 2,000 of the 6,500 people that Seagate plans to cut its global output last year. The reason is that Seagate's orders with Wuxi and Wuxi continued to decline in recent years, resulting in serious capacity losses Excess.It is not yet certain which areas the Seagate employees affected by the layoffs come from.
In recent years, Seagate continued to lay off staff and save costs in response to the weak demand in the PC market. Revenue in the first quarter of fiscal year (FY ended Sep. 29, 2018) continued to decline with a year-on-year decrease of 5.9%, becoming $ 2.63 billion quarter profit of 181 million US dollars, or earnings per share of 0.62 US dollars, compared with 167 million US dollars the same period in 2016, or 0.55 US dollars per share improved Seagate said that due to warming data processing demand, its storage products to buy gas Has gradually returned.
Seagate expects the company to account for $ 50 million in pretax spending because of global layoffs in fiscal year 2018. Looking ahead, Seagate is forecasting a quarter-on-quarter increase in revenue and a 2-3% increase in gross profit margin. The savings will drive Seagate's annualized cost savings of about $ 64 million, which will be credited with results from the quarter ending in March 2011. In addition, Seagate's acquisition of Bain Capital (Bain Capital) Alliance to provide 1.25 billion US dollars, is expected to be invested in March 2018. Seagate believes that investment in Toshiba will help stabilize its NAND Flash business, strengthen the product portfolio, and announced the long-term NAND memory with Toshiba Storage long-term Supply contract in the hope of ensuring a stable supply of Seagate SSD NAND storage, and Seagate also believes operating efficiencies will be boosted by Seagate's many strategic moves announced this time.