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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."
Get rid of 100% of the workforce. Just think what that will do for the share price.
"Good news, and the stock is up 12% after hours as a result."
Well...good news except for the 6500 people you just fired. But as long as you got paid, that's all that matters, eh, Mr Investor?
"Tell me doctor, with all of your defenses, are there any provisions for an attack by killer bees?"
"Computer-memory specialist Seagate..."
Try again:
"Computer storage specialist Seagate..."
Memory â Storage.
Did the Seagate stock price go up because of the layoff or that the S&P 500 broke records today?
for your local nationalist party.
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.
Are you sure there was more to be proud of a few decades ago? What happens around the world today is, basically, the result of the fuckups the west committed in the last century.
You sure the difference isn't just that you're better informed nowadays?
Also don't kid yourself. Central and South America, as the rest of the world, is densely populated with people. There's just as much to be ashamed of there as in the US or where I live.
The only difference will be that it's new bullshit which gets you another few years to get used to and then fed up with. So that might be worthwhile.
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).
"It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap