Seagate Confirms To Close Singapore Plant, Axe 2,000 Workers
August 04 2009 - 5:41AM
Dow Jones News
U.S. hard disk maker Seagate Technology Ltd. (STX) Tuesday said
it will close down its Singapore hard disk drive manufacturing
plant by the end of next year and lay off 2,000 workers as a
result.
Seagate said in a statement that it will relocate its hard disk
manufacturing operations in Singapore to other existing sites. It
did not disclose how many workers are employed at the plant that
will be closed.
"This consolidation is necessary in order for Seagate to further
increase efficiency and reduce costs by leveraging investments
across fewer manufacturing sites," the company said.
The workers being laid off will be offered severance benefits in
line with company policy, according to the statement. The company
said it is also "giving every consideration" to relocating some
employees to other Singapore operations.
Seagate also said it will maintain its Asia international
headquarters in Singapore, as well as its media operation and
product development and design center in the country.
The statement from Seagate confirms an earlier report of the
plant closure on the Web site of Singapore's Straits Times
newspaper.
-By Se Young Lee, Dow Jones Newswires; +65 6415 4155;
vincent.lee@dowjones.com