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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."
Did the Seagate stock price go up because of the layoff or that the S&P 500 broke records today?
I worked for a company that did this - stock took a 50% bounce up.
The market doesn't appreciate employees - employees are an expense, the market cares about results and seems to think that an empty building is more likely to get profitable results than one filled with people working toward a purpose.
Less customers to buy stuff though, because more and more and more and more people are either jobless or have less disposable income due to this bullshit and it keeps going on and it's starting to get bad.
I'm convinced we're on the tipping point, real close to it. The division between the rich and the poor is about to be truly exposed soon.
That is because in Germany it is very expensive to fire your employees. In some cases, it is not possible at all.
Germany does a good job of protecting the workers and in many cases, protecting the companies from their own short shortsightedness.
At the end of the last recession, Germany was one of the few countries perfectly positioned to take advantage of the upturn in demand precisely because they were not allowed to kick out 50% of their work force. This meant that the trained workers were already in place to ramp up production.
While in other western countries, the most skilled workers, i.e. oldest and most expensive, were all on unemployment and could not get rehired since they wanted too much money.
I guess it is hippy thinking on my part. I believe that companies have a right to make money, sure. But, they should not have the right to do so at the expensive of society as a whole. Especially as society is what allows them to make money in the first place.
If everyone fucks everyone else all the time, then things wont tend to work out that well in the long run. IMHO anyhow.