‘116’ proposed Seagate job losses

The figure was put to workers at the firm’s plant in Springtown on Thursday afternoon, sources told the ‘Journal’.

One source estimated the job losses will affect over 7 per cent of the factory’s workforce and will be across all sections.

They described it as a ‘sore blow’ for workers.

A spokesperson for Seagate said: "As noted in our FY23 Q3 Earnings press release on April 20, 2023, Seagate announced a restructuring programme to reduce our cost structure in response to changes in macroeconomic and business conditions.

“These actions include a global workforce reduction, which is one of the most difficult decisions a leadership team undertakes.

"Our goal is to take these next steps in a thoughtful manner and work collectively with employees.

“Seagate has over 30 years of investment and partnership in NI, establishing the facility as a world leading resource in nano-manufacturing and technology research.

"The team continues to play a significant role as we invest in mass capacity data solutions driving our future growth.”

Last month, the firm announced it would be taking ‘aggressive actions to lower our cost structure’ after quarterly revenues came in below expectations.

Dave Mosley, Seagate’s CEO, last month said its operating expenses for the last quarter included a $300m settlement for alleged violations of US Export Administration Regulations by the US Department of Commerce's Bureau of Industry and Security (BIS).

The settlement related to Seagate’s sales of hard disks to Huawei between August 17, 2020 and September 29, 2021. Seagate agreed to pay a settlement of $300m in instalments of $15million per quarter over five years.

Foyle MP Colum Eastwood said: “Seagate is a crucial employer in Derry and the North West, employing highly skilled staff in various roles.

"They have been a critical driver of economic growth in our city and region since they first arrived and remain a much-valued asset to Derry’s economy.

“Last month, I met with senior management at Seagate along with my SDLP colleagues Mark H Durkan and Sinéad McLaughlin to press the need to keep jobs and employment in our city and stress how detrimental these job losses would be to our local economy and I’ve been in constant contact with them since.

"It’s crucial that Seagate listen to its loyal workforce, minimise the impact these cuts will have on its staff and liaise with workers who would prefer voluntary redundancy.”