Feeds

WD junks SCSI as HDD wars take toll

3400 layoffs at Seagate and WD

  • alert
  • submit to reddit

Boost IT visibility and business value

Seagate is issuing redundancies to 2900 workers in Thailand, and smaller rival Western Digital is putting 420 staff on the job scrap heap. Seagate says the staff cuts are the latest round of the reorganisation last year which will see the company reduce its 77,000 headcount by ten per cent this September. As an indicator of financial health, Western Digital’s lay-offs look more serious -- the company is throwing in the towel in the SCSI disk sector, citing declining share and increased competition in what it calls the enterprise storage market. WD will concentrate all its efforts now on building HDDs for desktop PCs. The company today announced that its net loss for the quarter ended 31 December, is expected to be in the range of $67-70 million, compared with Wall Street forecasts of $100 million "before special charges". It looks like WD did well out of the consumer PC sales rush, if not enough to actually make a profit. Seagate also beat analyst predictions in its most recent fiscal quarter, but it says the hard drive market remains very competitive. Meanwhile, Quantum's hard disk drive group announced its figures for its third quarter ended 26 December 1999. Sales were $889 million on record shipments of 8.7 million units. Net income was $5.2 million. The company attributed the sequential improvement in gross margins (Q2: 2.9 per cent; Q3: 11.7 per cent) to better industry conditions and improved execution. The HDD group generated $71 million in cash from operations in the December quarter and achieved a record 34 inventory turns. Adaptec, a company that knows how to make money from SCSI, also posted some rosy results yesterday, announcing net income for its Q3 up 27 per cent to $31.7 million. The company has laid off 975 staff in the past two years. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.