Seagate To Cut 8% Of Global Workforce; Q1 Profit Misses Estimates

(RTTNews) - Seagate Technology Holdings plc (STX) said its Board approved and committed to a restructuring plan to reduce cost structure. The Plan includes reducing worldwide headcount by approximately 3,000 employees, or 8% of the global workforce. The company expects the plan to result in total pre-tax charges between $60 million and $70 million. The company expects to realize run-rate savings of approximately $110 million on an annualized basis starting in the third quarter 2023.

First-quarter non GAAP earnings per share was $0.48 compared to $2.35, prior year. On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.76, for the quarter. Analysts' estimates typically exclude special items.

Net income declined to $29 million or $0.14 per share from $526 million or $2.28 per share, prior year.

Revenue declined to $2.04 billion from $3.12 billion. Analysts on average had estimated $2.10 billion in revenue.

The Board declared a quarterly cash dividend of $0.70 per share, which will be payable on January 5, 2023 to shareholders of record as of the close of business on December 21, 2022.

For second quarter, the company expects: revenue of $1.85 billion, plus or minus $150 million; and non-GAAP EPS of $0.15, plus or minus $0.20.

Shares of Seagate Technology are down 8% in pre-market trade on Wednesday.