The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Computer, Electrical Electronic And Optical Products Manufacture Of Computer, Electronic And Optical Products 26.20 - Manufacture of computers and peripheral equipment
6,500 jobs Number of planned job losses
Announcement Date
12 July 2016
Employment effect (start)
12 July 2016
Foreseen end date
1 April 2017
Description
Hard drive manufacturer Seagate is to cut around 6,500 jobs, or 14% of its global business. This is a follow up to plans to cut 3% of its global workforce by end of financial year 2017. 70 of these jobs are in Derry, where Seagate has 1,400 staff, although this is likely to increase as the proportion of the workforce being cut has been raised.
The cuts are a result of Seagate’s main product, a hard disc drive, being increasingly superceded by solid state drives, particularly in the mobile sector. Indeed, worldwide PC shipments fell 4.5% to 62.4 million in the second quarter of 2015. Markets have responded, with shares up 8.8% following the announcement. The restructuring will likely cost around $164 million. Employees in mainland Europe, the Middle East, and Asia will likely also be affected going forward.
Sources
12 July 2016: BBC
11 July 2016: Fortune
12 July 2016: Derry Journal
Citation
Eurofound (2016), Seagate Technology, Internal restructuring in World, factsheet number 88228, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/88228.
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