this post was submitted on 02 Nov 2023
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Western Digital is splitting into two companies, one focused on HDDs and one on Flash Memory (www.tweaktown.com)
submitted 10 months ago by [email protected] to c/[email protected]
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[โ€“] [email protected] 2 points 10 months ago (1 children)

Title translation:

WD is spinning off HDD business because it's low margin and holding back earnings/growth numbers which pissing off shareholders.

This is the reason for most spin offs these days, way to cut off underperforming business units to make the numbers look better and keep investors happy short term. A company will cut its overall revenue in half or more these days just to make a quick buck in the process, it's really pathetic honestly.

[โ€“] [email protected] 1 points 10 months ago

WD is spinning off HDD business because it's low margin and holding back earnings/growth numbers which pissing off shareholders.

Other way around, their HDDs have decent margins while their flash business is losing money.