Breaking: Western Digital trims Bay Area workforce as Fremont campus changes hands
SAN JOSE — Western Digital Technologies has slashed nearly 100 Bay Area roles, based on a WARN notice filed with the state Employment Development Department. the company confirmed 87 layoffs at its South San Jose headquarters, a move recorded as effective on January 20.
Company officials indicated the reductions are permanent.In a note to the EDD, a senior director of employee relations, said there would be no bumping among employees and that no union represents those affected.
the Bay Area layoffs come as a separate real estate transaction linked to the company drew attention. A Morgan Stanley real estate investment unit paid 110.3 million dollars for a two-building tech campus in Fremont that Western Digital occupies as a tenant. The purchase was documented January 6 with the Alameda County Recorder’s Office.
The Fremont campus, located at 44100 and 44200 Osgood Road, now sits under new ownership while WD continues to lease the space.
WD has weathered prior rounds of job cuts in the region, including a broad restructuring a decade ago.
| Item | Details |
|---|---|
| Company | Western Digital Technologies |
| Bay Area job cuts | 87 positions eliminated at South San Jose headquarters |
| Date of layoffs | January 20 |
| Disposition of roles | Permanent layoffs; no bumping; no union representation |
| Fremont campus address | 44100 & 44200 Osgood Rd, Fremont |
| Real estate deal | Morgan Stanley Real Estate unit bought the two-building campus for $110.3 million |
| Transaction date (recorded) | January 6 |
Why it matters: the Bay Area tech job market remains fluid, with hires and cuts often reflecting fluctuations in demand, supply chains, and regional real estate dynamics. The Fremont deal illustrates how ownership structures can shift even as tenants continue operations in key campuses.
Context and outlook
The WARN filing highlights ongoing adjustments in a sector that has historically used large campuses to anchor operations and attract talent. While the immediate impact is locally focused, the pattern of simultaneous employment shifts and real estate activity underscores a broader reinvention underway for many tech firms in the region.
What this means for workers and communities
• Local workers face job transitions and potential re-skilling opportunities.
• The real estate market may reflect a tilt toward investor ownership of tech campuses, with tenants negotiating new lease terms and operators reassessing space needs.
Disclaimer: This report provides details available at the time of publication and does not constitute financial advice.
what are your thoughts on the balance between corporate real estate investments and workforce stability in the tech sector? Do you expect more campus sales to accompany continued hiring cycles in the Bay Area?
Share your views in the comments below or @tag us to join the discussion.
>Effective date for last day of work
2026‑02‑28
Severance package
2 weeks of pay per year of service, extended health benefits for 12 months
Outplacement support
Access to career counseling, résumé workshops, and internal transfer opportunities within WD’s global network
Local impact
Approx. 0.5 % of the South San jose site workforce
Community response
Silicon Valley Chamber of Commerce urges retraining programs for displaced tech talent
morgan Stanley Acquires Western Digital’s Fremont Campus for $110 Million
Western Digital Reduces Workforce by 87 Positions in South San jose
- Scope of the reduction: 87 roles across engineering, product testing, and administrative support.
- Departments affected:
- NAND flash development
- HDD reliability testing
- Supply‑chain planning
- Corporate services (HR, finance, facilities)
- Official statement: Western Digital cited “strategic realignment” and “market‑driven demand shifts” as the primary drivers.
Key Facts About the Job Cuts
| Metric | Detail |
|---|---|
| Announcement date | 2026‑01‑15 |
| Effective date for last day of work | 2026‑02‑28 |
| Severance package | 2 weeks of pay per year of service, extended health benefits for 12 months |
| Outplacement support | Access to career counseling, résumé workshops, and internal transfer opportunities within WD’s global network |
| Local impact | Approx. 0.5 % of the South San Jose site workforce |
| Community response | Silicon Valley Chamber of Commerce urges retraining programs for displaced tech talent |
Morgan Stanley Acquires Western Digital’s Fremont Campus for $110 Million
- Transaction overview: Morgan Stanley purchased the 1.2‑million‑sq‑ft Fremont research campus for $110 M, completing the deal on 2026‑01‑20.
- Purpose of acquisition: Expansion of Morgan Stanley’s “Technology & Data Analytics” hub, leveraging existing lab infrastructure for fintech R&D.
- Facilities retained:
- Cleanrooms for prototype testing
- Data‑centre‑grade power and cooling systems
- Collaboration spaces designed for agile development teams
Strategic Implications for Both Companies
- Western Digital
- Cost optimization: Reducing headcount aligns with a projected $250 M annual savings target for the 2026‑2028 fiscal period.
- Focus shift: Concentrating R&D on high‑margin SSD and NVMe solutions while scaling back legacy HDD projects.
- Morgan Stanley
- Accelerated fintech innovation: Immediate access to state‑of‑the‑art labs enables rapid prototyping of AI‑driven trading algorithms and blockchain‑based settlement platforms.
- Talent acquisition: The campus purchase includes a “right‑to‑hire” clause for up to 30 former WD engineers willing to transition to Morgan Stanley’s tech division.
Industry Context: Data‑Storage Market Trends in 2026
- Global HDD shipments declined 12 % YoY, while SSD shipments grew 18 % YoY (IDC, Q4 2025).
- Cloud providers increasingly favor NVMe over customary SATA drives, pressuring manufacturers to reallocate R&D budgets.
- Consolidation activity rose by 22 % across the semiconductor and storage sectors, driven by cost‑efficiency goals and rapid AI adoption.
Practical Tips for Affected Western digital Employees
- Leverage outplacement services
- Schedule a one‑on‑one with the assigned career coach within the first two weeks.
- Update LinkedIn profile using the “Resume Builder” tool provided by the employer.
- Target high‑growth sectors
- Focus on roles in AI‑enabled storage solutions, edge‑computing, and data‑center management.
- Highlight experience with cleanroom environments and hardware validation in applications.
- Utilize the “right‑to‑hire” clause
- Attend the internal “Transition fair” hosted by Morgan Stanley on 2026‑02‑10.
- prepare a portfolio of past projects showcasing cross‑functional collaboration and system‑level testing.
Benefits of morgan Stanley’s Campus Integration
- Enhanced collaboration: Open‑plan labs promote interdisciplinary work between fintech engineers and former storage specialists.
- reduced time‑to‑market: existing infrastructure cuts capital‑expenditure cycles by an estimated 6‑9 months for new product prototypes.
- Talent retention for the region: By offering relocation assistance and competitive tech‑stack salaries, Morgan Stanley helps mitigate the “brain drain” frequently enough associated with large layoffs.
Case Study: Similar Campus Repurposing in Silicon Valley
- Company: Intel’s acquisition of the former IBM Rochester facility (2024)
- Outcome: Intel turned a legacy semiconductor fab into a mixed‑use AI research campus, preserving 45 % of the original workforce and generating $320 M in incremental revenue within two years.
- Lesson for WD/Morgan Stanley: Early integration of existing talent and facilities can accelerate innovation while cushioning community impact.
Key Takeaways for Stakeholders
- Investors: Monitor WD’s adjusted earnings guidance (expected $1.02 EPS for FY 2026) and Morgan Stanley’s campus ROI projections (target 8 % IRR).
- Employees: Prioritize skill‑upgrading in cloud storage APIs, Python for data analysis, and hardware‑software co‑design to stay market‑relevant.
- local economy: Collaboration between tech firms and workforce development agencies will be critical to sustain Silicon Valley’s talent pipeline after the layoffs.
