Seagate workers still uncertain over future as company remains tight-lipped on potential for redundancies

Speculation has been rife jobs could be axed and pay slashed after the hard disk manufacturer said it would be taking ‘aggressive actions to lower our cost structure’ after quarterly revenues came in below expectations.

Several sources told the ‘Journal’ they were fearful of potential redundancies running into the hundreds.

Seagate declined to comment on numbers when contacted by the paper.

One worker said: “People have been really feeling it because of the cost-of-living crisis and there is a lot of uncertainty. They are worried about potentially losing their jobs and asking, will they have a wage?”

Last week the California-headquartered company reported ‘weaker than expected nearline demand among a few large customers’ in the last financial quarter and said it was ‘taking aggressive actions to lower our cost structure’.

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.

Unite the Union has been fighting a campaign for union recognition at the Springtown plant.

A source said: “There is a real concern among Seagate workers about the level of redundancies. The timing of this is questionable given that there has been a strong campaign for union recognition.

"This has really taken hold among workers locally due to the cost of living crisis and the fact workers are facing inflation at 10.1 per cent.”

The ‘Journal’ again asked Seagate if it was planning to make an announcement on whether or not pay cuts or redundancies will be implemented in Derry and if it had met with political and civic leaders to discuss the situation.

A spokesperson stated: "Seagate cannot speculate on any numbers or positions while our restructuring is in progress. As noted in our press release, we expect this process to be substantially completed by the end of the current quarter."

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