Momentum Continues Across Broad Scope of
Transaction Activities
Company Appoints Key Executive Leaders for
Flash and HDD Companies
Western Digital Corp. (NASDAQ: WDC) (“Western Digital” or “the
Company”) today provided an update on its previously announced plan
to separate into two independent, publicly traded companies. On
track for the second half of calendar year 2024, significant
progress towards the completion of the separation is underway with
key transactional projects including global legal entity
establishment, customer and supplier contract transfers, final
stage preparation for government filings, and initial executive
leadership appointments for both HDD and Flash companies
post-separation.
Announced on October 30, 2023, Western Digital plans to separate
its HDD and Flash businesses, creating two independent, public
companies with market-specific, strategic focus. The company’s
separation will better position each franchise to execute
innovative technology and product development, capitalize on unique
growth opportunities, extend respective market leadership
positions, and operate more efficiently with distinct capital
structures.
Implementing a standalone separation strategy is advantageous in
creating shareholder value and driving long-term success for its
businesses. Over the past several years, the company has laid
important groundwork by building market-leading portfolios,
enhancing the operational efficiency of each business, including
the creation of separate Flash and HDD product business units and
separating operational capabilities. Today, each business is
solidly positioned to succeed on its own with strong product
portfolio, operational and financial leadership in place.
In the current phase of its separation process, the company is
making significant progress in a broad scope of projects critical
to completing the transaction as scheduled. Currently, Western
Digital’s separation teams are establishing legal entities in the
18 countries where operations are located, preparing independent
company financial models, finishing final preparations for SEC and
IRS filings, conducting a contract assignment process for global
customers and suppliers, and designing company-wide organizational
structures for both companies.
“Today’s announcement highlights the important steps we’re
making towards the completion of an extremely complex transaction
that incorporates over a dozen countries and spans data storage
technology brands for consumers to professional content creators to
the world’s leading device OEMs and the largest cloud providers,”
said David Goeckeler, CEO of Western Digital. “I’m pleased with the
exceptional work the separation teams have done so far in creating
a spin-ready foundation that will ensure a successful transition to
independent, market-leading companies for our Flash and HDD
businesses.”
Establishing the executive leadership team for the Flash spinoff
company also is progressing with Goeckeler today appointed CEO
Designate.
“While both Western Digital’s businesses will have the strategic
focus and resources to pursue exciting opportunities in their
respective markets once the separation is complete, the Flash
business offers exciting possibilities with market growth potential
and the emerging development of disruptive, new memory
technologies. I am definitely looking forward to what’s next for
the spinoff team,” added Goeckeler.
Irving Tan, currently Executive Vice President, Global
Operations at Western Digital, will step into the CEO role for the
remaining standalone HDD company to continue operating as Western
Digital.
“Since joining Western Digital two years ago, Irving has made a
tremendous impact on the transformation of our global operations
organization and plays an integral role in running our HDD
business,” said Goeckeler. “He leads with global perspectives,
diverse insights and deep industry expertise and I have full
confidence in him as Western Digital’s chief executive when the
separation is completed.”
The executive appointments announced today are subject to – and
will be effective upon – completion of the planned separation
following the satisfaction of customary conditions. Additional
executive leaders for both companies will be named at a later date
as appointments are determined.
Western Digital will continue to provide updates throughout the
separation process as key projects progress.
About David Goeckeler
David Goeckeler is the CEO at Western Digital and serves on the
Board of Directors.
Since joining Western Digital in March 2020, Goeckeler has
focused on the company’s transformation as the leading data storage
producer in the industry. With more than a third of the world’s
data stored on its products, Western Digital solutions power
innovation from the devices we use every day, to the edge, to the
foundation of the cloud. The company has extensive operations
throughout the United States and Asia, with over 50,000 employees
worldwide. Its brands SanDisk, SanDisk Professional, WD, WD Black,
and Western Digital are widely recognized globally for innovation,
performance, and quality.
Goeckeler serves on the Board of Directors and as Vice Chair of
the Semiconductor Industry Association and on the Board of
Directors of ADP, a comprehensive global provider of cloud-based
human capital management solutions. He also serves as Vice Chair of
the U.S.-Japan Business Council at the U.S. Chamber of Commerce and
sits on the University of Illinois College of Engineering Board of
Visitors.
About Irving Tan
Irving Tan is Executive Vice President of Global Operations at
Western Digital. He is responsible for all global operations
functions, including manufacturing operations, procurement and
supply chain, and IT.
Widely known as an exceptional leader, Tan has decades of
experience in sales and global operations, market transitions, and
customer and government dynamics. Prior to Western Digital, he
served as Executive Vice President and Global Chief of Operations
at Cisco where he was responsible for the development and
implementation of the company's operating strategy and targeted
growth through productivity improvements and innovation across all
core business functions, including sales, engineering, supply
chain, and services.
Tan serves on the Stanley Black & Decker Board of Directors,
the Singapore Economic Development Board, and the PSA
International. Additionally, he has served as an advisor to
governments and industry partners on using technology to innovate
and transform.
About Western Digital
Western Digital is on a mission to unlock the potential of data
by harnessing the possibility to use it. With Flash and HDD
franchises, underpinned by advancements in memory technologies, we
create breakthrough innovations and powerful data storage solutions
that enable the world to actualize its aspirations. Core to our
values, we recognize the urgency to combat climate change and have
committed to ambitious carbon reduction goals approved by the
Science Based Targets initiative. Learn more about Western Digital
and the Western Digital®, SanDisk® and WD® brands at
www.westerndigital.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of federal securities laws, including statements
regarding: expectations for the outcome and impact of the planned
separation of our HDD and Flash businesses, including with respect
to the ultimate form, timing and other characteristics of the
separation transaction; our ability to achieve key milestones and
ultimately complete the separation transaction; the long-term
performance, market position, opportunities, product portfolios,
operational efficiency and success of our separated businesses; the
creation of shareholder value by separating our businesses; the
operational and financial leadership of the separated businesses;
the position of our businesses in the data storage industry; our
ability to execute technology and product development; the
development of new memory technologies; and the executive
leadership of the separated business.
These forward-looking statements are based on management’s
current expectations and are subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. Key risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements include: operational, financial and legal challenges and
difficulties inherent in implementing a separation of our HDD and
Flash businesses; the final approval of the separation by our board
of directors; availability of financing; execution of definitive
documentation; completion of audited financials and necessary
filings; receipt of opinions and/or rulings from certain third
parties; ability to satisfy necessary closing conditions on a
timely basis; volatility in global economic conditions; inflation;
increase in interest rates and economic recession; future responses
to and effects of global health crises; the impact of business and
market conditions; macroeconomic conditions for the NAND and hard
disk drive markets; the impact of the announced separation
transaction, including with respect to customer and supplier
relationships, regulatory and contractual restrictions, stock price
volatility and the diversion of management’s attention from ongoing
business operations and opportunities; the impact of competitive
products and pricing; our development and introduction of products
based on new technologies and expansion into new data storage
markets; risks associated with cost saving initiatives,
restructurings, acquisitions, divestitures, mergers, joint ventures
and our strategic relationships; difficulties or delays in
manufacturing or other supply chain disruptions; hiring and
retention of key employees; our level of debt and other financial
obligations; changes to our relationships with key customers;
compromise, damage or interruption from cybersecurity incidents or
other data system security risks; actions by competitors;
international conflict; terrorist activities; risks associated with
compliance with changing legal and regulatory requirements and the
outcome of legal proceedings; and other risks and uncertainties
listed in our filings with the Securities and Exchange Commission
(the “SEC”), including the our Annual Report on Form 10-K filed
with the SEC on August 22, 2023 and Quarterly Reports on Form 10-Q
filed with the SEC on November 7, 2023 and February 12, 2024, to
which your attention is directed. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date hereof, and we undertake no obligation to update or
revise these forward-looking statements to reflect new information
or events, except as required by law.
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Western Digital Corporate Communications
wd.mediainquiries@wdc.com
Western Digital Investor Relations investor@wdc.com
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