Seagate occupies some 9.6 million square feet globally, two-thirds of which is industrial and the remainder split fairly evenly between product development and administration. The company is headquartered in the Cayman Islands but keeps its executive offices in Scotts Valley, which sits between San Jose and Santa Cruz, and also leases office space in Milpitas, which sits just north of San Jose.
Seagate's principal disc drive design and research and development facilities are located in Colorado, Minnesota, Pennsylvania, Massachusetts and Singapore. Its principal manufacturing facilities are located in China, Malaysia, Northern Ireland, Singapore and Thailand, and, in the US, in California and Minnesota.
The company did not immediately respond to a request for a current breakdown of their real estate portfolio. The last time Seagate detailed its portfolio in an SEC filing was 2003. At that time, it said it owned and leased 2.8 million square feet in the US, including 745,000 square feet in California, with the longest leases running through 2027. Its largest US presence was in Minnesota, where it occupied 1.2 million square feet.
The company says it has shaved labor costs by 25% since the start of the year. It will take a $72-million pre-tax restricting charge in its June 2009 quarter consisting mainly of cash based employee termination costs, which are expected to be substantially paid in the September 2009 quarter.
Seagate hopes to save $125 million a year from the layoffs and be cash flow and earnings positive in its 2010 fiscal year. To make it happen, additional operating savings will be sought in product development, marketing/administrative and manufacturing areas. Consequently, the company expects to incur restructuring charges in the June quarter of an undetermined amount.
Seagate leases approximately 110,000 square feet in Milpitas. Last summer, it expanded a leasehold at 3101 and 3121 Jay Street to 35,673 square feet that runs into 2012. It also leases a 77,200-square foot R&D building with a 66,000 square-foot clean room on Milpitas Boulevard on a five-year lease that runs into 2012 but last fall vacated the space in favor of overseas manufacturing.
The Jay Street buildings are owned by Westcore Properties. A family trust owns the R&D building.
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