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Western Digital is spinning off its flash memory business as sales decline

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Western Digital is separating its flash memory and hard drive businesses. The company says the change will allow it to “realize its full value.”

Western Digital is splitting into two companies: one for its flash business and another for its hard drive storage products. The company announced the change alongside its earnings results on Monday, noting that spinning off its flash business will allow Western Digital to “realize its full value.” Western Digital acquired flash memory manufacturer SanDisk for nearly $19 billion in 2016.

“Our HDD and Flash businesses are both well positioned to capitalize on the data storage industry’s significant market dynamics,” Western Digital CEO David Goeckeler said in a statement. “Given current constraints, it has become clearer to the Board in recent weeks, that delivering a stand-alone separation is the right next step.” This past quarter, Western Digital’s revenue dropped 26 percent year over year as flash memory and disk drive sales declined.

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