Seagate expands 2022 Restructuring Plan, sees $55M-$65M in charges

In a regulatory filing, On March 29, Seagate announced it 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 throughout the company, 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 the fiscal fourth quarter 2023 and result in total pre-tax charges between $55M-$65M, consisting of cash expenditures between $25M-$30M for employee termination costs and $5M-$10M for other related exit costs, as well as non-cash charges of approximately $25M. The company expects to realize approximately $40M-$45M in annualized savings from this expanded Plan, beginning in the fiscal fourth quarter 2023.