Newly-filed Seagate accounts confirm 300 redundancies at Derry plant

"Since the year end the Company reduced its headcount by approximately 300 - this was substantially complete by the end of the first quarter of the 2024 financial year,” the company’s newly-filed report and financial statements for the year to June 2023 show.

Last summer the ‘Journal’ reported that a call for voluntary redundancies at the Springtown hard disk and data storage manufacturer had been oversubscribed with at least 228 workers applying to leave, although the company would not confirm the figure at the time.

The new accounts show the figure was north of that with 300 redundancies since June 2023 from a workforce where the average monthly number of employees during the year to June 2023 was 1,639.

Elsewhere the accounts state: "During fiscal year 2023, the Company recognised redundancy costs of $17,173,000 relating to reorganisation costs incurred as part of the Seagate Group's restructuring plans, in order to reduce its cost structure to better align operational needs to current economic conditions while continuing to support the long-term business strategy.

“Restructuring costs are fully reimbursed by another group company. Of these costs $15,061,000 remained unpaid as of June 30, 2023, and were paid in October 2023.”

In April of last year Seagate announced that it would be taking ‘aggressive actions to lower our cost structure’ after revenues came in below expectations.

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