SanDisk Reports Layoffs in Israel Amid Strong Financial Performance
SanDisk Corporation (SNDK) is experiencing significant growth driven by strong demand for NAND flash memory due to AI-related applications. The company reported a revenue of $8.96 billion in fiscal Q4, up 372% year-over-year, with earnings per share surpassing Wall Street estimates. Despite these positive financial results, SanDisk has reportedly laid off dozens of employees at its R&D centers in Israel. The layoffs affect around 700 workers and are seen as part of a broader efficiency initiative rather than an indication of trouble for the stock. The company is aiming to achieve up to $10.8 billion in revenue this quarter, with data center revenue more than doubling from the prior quarter. SanDisk's financial strength includes high gross margins and significant free cash flow. The move has surprised some employees due to its timing before a planned employee stock-purchase plan. The company is reportedly shifting certain development tasks related to NVMe SSDs for cloud and AI servers to India, while Israel-based teams focus on new platform initiatives.
Tickers: $SNDK
Topics: efficiency push layoffs R&D cuts