“We are implementing a restructuring plan to permanently reduce costs, which will also include a reduction in our workforce,” said CEO Dave Mosley. According to the company, the restructuring plan will bring savings of approximately $ 110 million (approximately CZK 2.7 billion) annually. It is expected to incur one-time costs of approximately $ 65 million, primarily for severance pay for departing employees.
The problem for the traditional hard drive manufacturer is the growing popularity of SSDs. According to the TrendFocus server, the breakthrough in user behavior occurred as early as two years ago, when the sales of SSDs for the first time exceeded the demand for classic hard drives, which usually offer a more attractive price in proportion to the total capacity. .
Although Seagate has changed its focus over time and started offering SSDs as well, there is a lot more competition in this market than there is from hard drives. SSDs are also offered by companies that previously did not produce classic hard drives.
Demand for SSDs increased by 500%. The miners buy them
Hardware
SSD vs HDD
SSDs contain no moving parts, which makes them much faster than conventional drives. This can be seen in practice when opening files and when starting the computer. Virtually all models are also completely silent. They do not unnecessarily increase the noise inside the cabinet, unlike hard drives, which in some cases are the loudest part of the computer.
However, these fast data stores are often criticized for offering insufficient capacity. In this respect, classic hard drives are much better, offering much more storage space for the same price.
Currently you can buy a 1TB hard drive for a thousand crowns, but in the case of SSD drives, for the same price, we only get 512GB capacity. A few years ago, however, the differences in capacity for the same price were even more abysmal.
On the other hand, the advantages of SSDs are undeniable. And that’s also why we see them more and more in cheap laptops and desktops. As a rule, ordinary hard drives literally play in the background here, they are used only as a second drive for data storage. The system and individual programs run smoothly with the help of an SSD.
Chip makers face the worst decline in the past decade
Hardware
The demand for computers is falling
However, Seagate’s layoffs are also another sign of weakening demand for personal computers after two years of strong growth driven by the Covid-19 pandemic, according to CNBC.
Research firm Gartner reported this month that the global PC market experienced a record decline in the third quarter due to economic uncertainty and excess unsold inventory. PC shipments fell 19.5 percent year-on-year, the company said, the sharpest drop in more than two decades that followed the figure.
