Seagate Extends Workforce Reduction by 480 employees, 1% of Global Headcount

In a SEC filing dated March 29, 2023, Seagate Technology Holdings plc committed to an expansion of the October 2022 restructuring plan to extend its previously announced workforce reduction by approximately 480 employees, or 1% of the global headcount.

These reductions span multiple functions and locations, and include aligning its Lyve Edge-to-Cloud Mass Storage Platform business plan to near-term market conditions and reducing Lyve Cloud investment levels in the near-term, while continuing to support the company’s long-term business strategy. The expanded plan is expected to result in further cost savings to better navigate the current macro-economic challenges.

This expansion of the plan is expected to be substantially completed by the end of 4FQ23 and result in total pre-tax charges between $55 million to $65 million, consisting of cash expenditures between $25 million to $30 million for employee termination costs and $5 million to $10 million for other related exit costs, as well as non-cash charges of approximately $25 million. The company expects to realize approximately $40 million to $45 million in annualized savings from this expanded plan, beginning in 4FQ23.

On March 29, 2023, the company announced that, in connection with the expanded Plan, Ravi Naik, EVP storage services, will leave the firm effective April 3, 2023. At the time of his appointment in 2017 at Seagate, president and COO Dave Mosley commented: “Ravi’s unique experience with technology hardware and storage players, combined with his highly collaborative and involved leadership style, will be a welcome addition to Seagate’s leadership team.”