Seagate Ups Q4 Outlook, Cuts 6500 Jobs
Seagate Technology plc says that sales of enterprise hard drives carried the quarter, but it will cut 14 percent of its workforce over the next year or so. Seagate expects to report revenue of approximately $2.65 billion, gross margin of 25% and non-GAAP gross margin of approximately 25.8% for the fiscal fourth quarter 2016.
Traditional hard drives are selling well despite all the talk about all-flash storage in the enterprise.
The company expects to report HDD unit shipments of approximately 37 million, reflecting approximately 62 exabytes, average capacity per drive of 1.7 terabytes and average selling price per unit of $67 for the fiscal fourth quarter 2016.
Seagate also announced today an additional restructuring plan for continued consolidation of its global footprint across Asia, EMEA and the Americas. The plan includes reducing the Company’s global headcount by approximately 6,500 employees, or 14% of its global headcount by the end of fiscal year 2017.