Seagate Fires 6,500, Or 14% of Workforce, Stock Soars (zerohedge.com)

turkeydance quotes a report from Zero Hedge: [Seagate] 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. The total pretax charges for the plan will be approximately $164 million in fiscal year 2017. The restructuring activities and global footprint consolidation underway should enable the Company to be operating within its targeted Non-GAAP product gross margin range of 27-32% by the December 2016 quarter. "Computer-memory specialist Seagate announced that its Q4 revenue would be $2.65 billion, beating expectations of $2.34 billion, and up from the $2.3 billion guidance given previously," reports Zero Hedge. "The company also reported gross margin of 25% and non-GAAP gross margin of approximately 25.8% for the fiscal fourth quarter 2016, up from the previous 23% forecast. Good news, and the stock is up 12% after hours as a result."

Comments

FFS

[Anonymous Coward]

"Computer-memory specialist Seagate..."

Try again:

"Computer storage specialist Seagate..."

Memory â Storage.

Re: Seagate Fires 6500, Stock Soars

[dunkelfalke]

To clarify this: I can speak only for GDR, but AFAIK this was pretty similar in the USSR and other former socialist countries.

There was no social safety net at all. Instead there was a constitutionally guaranteed right to work. This right to work was not the same as the American right to work, but more like a right to a job and to a wage directly proportional to the qualification independent of age and sex. In additional to it, there was also, in fact, sort of a duty to have a job. This resulted in the government assigning jobs to people who wouldn't find one themselves. This is also why many factories weren't very productive - because they have employed people who didn't do much. That was a substitute to a social safety net that pays to the unemployed, so at least the people, who would otherwise be unemployed, were able/forced to do something.

On the other hand, people with a decent qualification usually applied for a job directly at the management of the so called public owned enterprises they wanted to work at instead of letting the government officials choose a job for them. They could also take a job that required less qualified people without any problem if they were in the mood for such a menial job (that was something similar to contemporary downshifting).