back to article Seagate layoffs : 1,000 heads to be laid under the axe

Disk drive maker Seagate has two per cent of its workforce destined for the exit door. It’s announced a restructuring plan which means 1,050 people are going to have a pink slip shock. Seagate expects to save $113m by doing this. It has seen two quarters of declining revenues and profits. While investors, who have seen …

  1. Anonymous Coward
    Anonymous Coward

    The days of wine and roses...

    ...aka selling spinning rusty platters for huge profit, are coming to an end.

    1. Anonymous Coward
      Anonymous Coward

      Re: The days of wine and roses...

      I can't recall exactly where I saw it, but there was some data published by a huge US based datacenter who use several manufacturers for their drives. The data showed hard drive failure rates, Seagate were by far the worst from my recollection. Hitachi were by far the best and I was actually looking for a drive at that time and my money went to Hitachi as a result.

      I'm not saying that report was necessarily representative, but if it is, then perhaps Seagate's reliability is a reason as to why they are losing sales and needing to lose people.

      1. Anonymous Coward
        Anonymous Coward

        Re: The days of wine and roses...

        In many US government organisations generally speaking the only drives you can order are either seagate or WD. That is because they're US based companies. Hitachi would be a big no no. You know, buy merikun and all that.

        1. Anonymous Coward
          Anonymous Coward

          Re: The days of wine and roses...

          Hitachi is merging with WDC.

        2. Anonymous Coward
          Anonymous Coward

          Re: The days of wine and roses...

          Actually Hitachi (HGST) is a wholly owned WD subsidiary.

      2. Anonymous Coward
        Anonymous Coward

        Re: The days of wine and roses...

        I notice Seagate Hardrives only have 2 or 3 year warranties. Western Digital HD I just bought has a 5 yr warranty.

        What does that tell you about Seagate's confidence, or is it another way to generate more cash, to a company already making 2 billion in PROFIT per year?

        1. Anonymous Coward
          Anonymous Coward

          Re: The days of wine and roses...

          WDC has had and is having layoffs too. Not indication of product quality.

          1. Anonymous Coward
            Anonymous Coward

            Re: The days of wine and roses...

            Don't know if WD is having layoffs too, but in any case not necessarily an indication of product quality (and yes Seagate had quality issues in the past).

            The more likely cause is that unit demand for 15K drives is declining at 20% per year, and 10K at 15% per year. Flash has become the performance tier. And as flash prices are declining 20% per year expect this trend to accelerate. Spinning rust will be relegated to the capacity tier which will be 7200 RPM SATA or NL-SAS, and over time that too is vulnerable to TLC and 3D NAND.

            1. Anonymous Coward
              Anonymous Coward

              Re: The days of wine and roses...

              You are right about the past quality problems at Seagate, but they seem to have addressed that. More importantly it's the decline in HDD drives. The 15K SAS has actually declined faster than 20% per year. Total market size has fallen from ~5.1M units per quarter to ~3.2M per quarter over the last two years. So, last week, Seagate announced the last of the 15K drives, making formal what everyone was expecting. Expect WD/HGST and Toshiba to follow (and they have flash anyway). In the next 18 months expect 10K SAS to suffer the same fate. (if not sooner)

  2. earl grey Silver badge
    Unhappy

    Nevermind

    It's only seagate.

  3. Anonymous Coward
    Anonymous Coward

    2% does not sound like a lot. Where I work that amount resigns every month, they currently can't hire quick enough to keep up.

    1. Anonymous Coward
      Anonymous Coward

      "2% does not sound like a lot. Where I work that amount resigns every month, they currently can't hire quick enough to keep up."

      Where is that? I wouldn't mind a change of pace ;-)

  4. komodo dragon

    I wonder what that means for DotHill employees...

  5. Anonymous Coward
    Anonymous Coward

    2% yesterday....plus more from May....eventually, the Seagate R&D in the MN facility will be closed. management at Seagate are highly overpaid pompous morons, and yet, they will remain top heavy, get their 50-100k bonuses...while shedding long time loyal employees

  6. Sorry that handle is already taken. Silver badge

    2%?

    What does Seagate do with 50,000 employees?

    1. ManOnTheHill

      Re: 2%?

      Probably half or more of them are in China, Thailand, and Malaysia actually building the drives or maintaining software. The rest are spread around the world (lots in the US) designing and selling those drives.

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