Seagate Technology is going into default

Economic instability in the world of IT has led to the fact that the buyer began to give preference to inexpensive goods. To the detriment of performance and quality, the owners of computers and laptops switched to budget Chinese brands. Over the past six months, Samsung, Adata, Transcend, WD, Toshiba and many other enterprises have revised their pricing policy. There were separate product lines that can perform in the lower price segment.

 

It's sad that Seagate Technology went the other way. The budget segment was filled with old technologies in the hope of retaining the buyer. Naturally, the demand for storage media has dropped significantly. People switched to other brands that offer more technically advanced computer components.

Seagate Technology is going into default

 

At the end of October 2022, Seagate management announced a massive reduction in staff. The plans are to cut 8% of people at enterprises located around the world. On average, this is 3000 employees. Calling the cuts a restructuring, Seagate has already announced $110 million in annual savings.

 

Seagate is blaming the decline in demand for hard drives for everything that is happening. According to marketers, the buyer increasingly prefers solid-state storage drives. Only then it is not clear where the sales growth of 15% compared to last year came from Toshiba. And the manufacturer SYNOLOGY generally expanded its line of HDD hard drives.

 

That is, the problem with the decline in demand from Seagate is not related to purchasing power, but to pricing. If you recalculate the price of a disk per unit of volume, then each terabyte of information is too expensive. Compared to similar brands. It turns out that the company failed to sell itself.

Downsizing doesn't do any good. First, the share price will fall, then there will be a technological stagnation due to the outflow of investment. So close to default. Seagate's management needs to urgently recruit new staff and change its pricing policy. Now there is still a chance to pull the brand up. After all, buyers have never had questions about Seagate products. The brand has a wonderful range of IronWolf and Barracuda discs. They demonstrate high performance and are durable in operation.