Over 100 proposed Seagate job losses is a ‘sore blow’ for workers

IT giant, Seagate Technologies is expected to make up to 116 workers redundant at its Londonderry plant as part of a global restructuring plan.

The figure was put to workers at the hard disk manufacturer’s plant in Springtown during meetings on Thursday afternoon.

One source estimated the job losses will affect over seven per cent of the factory’s workforce and will be across all sections. They described it as a ‘sore blow’ for workers.

While confirming job cuts, the company said actual numbers could not be given at this stage.

The 116 figure is, however, lower than previous unconfirmed speculation that the job losses could run into the hundreds.

Seagate employs 1,650 people in Londonderry.

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 chief executive officer, 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.

In response SDLP leader and MP for Foyle Colum Eastwood called on the company to prioritise their workers: “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.

“I am seeking assurances from Seagate of their future commitment to Derry and to maintaining their highly skilled workforce here. Workers and their families must be put first.”

However, the trade union, Unite has disputed Seagate’s reasons for cutbacks adding it was ‘unnecessary and unjustified’, and urged workers to join the union in order to secure recognition and a collective voice going forward.

Unite general secretary Sharon Graham, urged: “The best way to defend themselves against threats to jobs and pay is for workers who are not already members to join a union and support our application for collective negotiation rights and recognition at the site.”

Unite regional officer Brenda Stevenson highlighted Seagate’s importance to the north west economy, and contrasted the company’s decision with recent comments by the US special envoy to Northern Ireland, Joe Kennedy: “The announcement by Seagate that they will seek over 100 redundancies is in stark contrast with Joe Kennedy’s recent statement, when he singled out Seagate as exemplifying US commitment to the Northern Ireland economy. Job losses of this nature are simply unacceptable.”