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National
Niall Deeney

Seagate Derry job loss fears as company urged to be 'upfront' with workers

Seagate has been urged to be "upront" with over 1,000 workers at its manufacturing site in Derry amid a fear of large scale job losses.

The hard-drive manufacturer, one of Derry 's largest private sector employers, has said it will not "speculate" on "any numbers of positions" but confirmed a "global restructuring plan" is in progress.

DUP MP Ian Paisley said the news shows "hype and announcements about a jobs bonanza" in Northern Ireland from American politicians was "all talk, no trousers" while Aontu councillor Emmet Doyle called for clarity from the company.

Read more: Seagate workers hopeful of union breakthrough months after job loss fears

An formal announcement from Seagate is expected this week. The job loss fears come just days after the US special economic envoy for Northern Ireland, Joe Kennedy, toured the factory as part of a visit to Derry.

The company was recently hit with a $300 million fine for breaching trading regulations relating to the Chinese market.

Export control rules put in place by the US government mean Seagate can no longer supply a significant market without risking further action by US authorities.

The $300 million fine was imposed for the sale of over $1.1 billion worth of disks to Chinese giant Huawei between August 2020 and September 2021.

Huawei was placed on a US trade blacklist in 2019.

A spokesperson for Seagate said: "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.

“Seagate cannot speculate on any numbers or positions while our restructuring is in progress."

DUP MP Ian Paisley said: "In light of the Seagate announcement on job cuts where are the Americans and all their promises?

"It is a real revelation that less a than a week since the QUB conference and all the hype and announcements about a jobs bonanza that it was all talk no trousers."

He added: "Northern Ireland doesn’t need this sort of hyped-up talk it needs real, steady, determined investment that is a long-term commitment to the people here."

Aontu councillor Emmet Doyle, meanwhile, said: "We are being drip-fed doom by Seagate management locally as to the potential for job losses in Springtown. Workers need to be told upfront what is happening."

He continued: "We had the 'Economic Envoy' lauding Seagate only last week as proof Derry wasn't being left behind - those words rang hollow then as they do now.

"Only a short time ago we had politicians back slapping each other over a quarter century since the Good Friday Agreement - supping with the great and good and now this."

Mr Doyle added: "We have a duty to support these workers to the hilt and secure these jobs for Derry.

"The impact of what is being mooted will affect many in the supply chain right across the North West and hand wringing if Seagate confirm the news will fall far short of what these workers and their families need from political leaders."

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