Seagate cutting the dividend can hardly be a surprise. What is surprising is that they didn’t eliminate it or cut it to a token rate of 1 cent as the banks have.
Luczo said the restructuring and wage cuts will save Seagate $300 million per year. Seagate also cut its dividend to investors from 12 cents last quarter to 3 cents, which will result in savings of another $175 million over the next year.
Of equal concern is the issues they are having with their recently released Barracuda drives…
In addition, last Friday Seagate confirmed firmware problems were causing failures of its 1 TB Barracuda 7,200 rpm drives, approximately two months after it was revealed that 1.5 TB Barracuda drives were freezing.
Yikes.
