Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: Z Analyzer who wrote (4594)	1/21/1998 9:57:00 PM
From: Joe E.	Read Replies (1) \| Respond to of 7841

<<They said in the call that there are restrictions on there ability to take write-offs for unannounced plant closings.>> Re future charges. I note that sales were off 30.4% from the same quarter a year ago and 12.1% from the immediately preceeding quarter. IMO laying off 10% of the workforce is not enough with sales declines of this magnitude. 10% is probably enough to lay off those folks involved directly in manufacturing and support functions for same, but IMO sales declines of this magnitude require either a rethinking of the whole business model or the ability to absorb huge losses until the market comes back. To make the company work as a business they have to have layoffs more closely approximating the % declines in revenue.