Cautious spending patterns amid macroeconomic weakness by customers, including global enterprise OEMs and certain domestic cloud clients, are likely to affect the demand for mass capacity solutions in the near term. STX is focused on cutting costs to better align with changing market conditions and support its long-term business strategy. In March, the company announced another round of layoffs, which will affect about 1% of its total headcount or about 480 employees. The new restructuring is expected to be considerably completed by the end of fourth-quarter fiscal 2023. This particular action will cost Seagate total pre-tax charges between $55 million and $65 million. In October 2022, Seagate had announced a restructuring plan to reduce the global workforce by 8% or approximately 3,000 employees, along with other cost-saving initiatives. Moreover, declining trends witnessed in PC shipments in first-quarter calendar-year 2023 are likely to have negatively impacted HDD sales.