Seagate tight-lipped on reports of 228 volunteers for redundancy in Derry

Several sources have told the ‘Journal’ upwards of 200 have volunteered for a proposed offer of four weeks per year of service. Last month sources said staff had been advised 116 jobs were to be made redundant but the ‘Journal’ understands almost double that number have come forward.

A number of sources this week told the ‘Journal’ 228 workers have applied to leave the Springtown hard disk and data storage manufacturer.

The ‘Journal’ asked Seagate about the reported applications for redundancy and if the company will accept them.

A spokesperson said: "As noted in our earnings press release on April 20, 2023, the company has committed to a global restructuring plan to reduce its cost structure in response to changes in macroeconomic and business conditions.

"The global plan is intended to align the company’s operational needs with the near-term demand environment while continuing to support the long-term business strategy.

“We have no further information to share at this time while the restructuring process is underway, and we continue through the Collective Consultation process.”

In April Seagate it was taking ‘aggressive actions to lower our cost structure’ after quarterly revenues came in below expectations.

“We are seeing a more elongated customer inventory correction that led to weaker than expected nearline demand among a few large customers late in the quarter.

"Consequently, our March quarter revenue came in at the low-end of our guidance range, which along with underutilization charges and other factors had a severe impact on our reported margins and profitability,” said Dave Mosley, Seagate’s chief executive officer.

“Looking ahead, we now expect demand recovery to begin towards the end of the calendar year."

"In response to this dynamic environment, we are taking aggressive actions to lower our cost structure while still positioning Seagate to thrive over the long-term and sustain our technology leadership,” he stated.

Mr. Mosley confirmed 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.

Seagate agreed to a settlement of $300m in instalments of $15million per quarter over five years.

Seagate ‘cannot speculate’ on potential for job cuts in Derry