Workers at Seagate in Derry have been told over 100 jobs will be lost, the Unite trade union has said.
One of the largest private sector employers in the city, fears of job losses had been looming for several weeks since a 'global restructuring plan' was announced by the hard drive manufacturer in April.
Unite say the company is seeking voluntary redundancies.
Read more: Seagate Derry job loss fears as company urged to be 'upfront' with workers
A spokesperson for Unite union, which is currently seeking official recognition at the site in Springtown, said: "Seagate management this afternoon informed workers that it was seeking redundancies from a workforce of 1,600 as part of a retrenchment package which has also included wage cuts."
A leading computer storage hardware maker, the high-tech company has operated in Derry for decades.
The company had previously said it would not "speculate" on "any numbers of positions" but confirmed a "global restructuring plan" is in progress.
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.
Unite General Secretary Sharon Graham said: “There’s no real justification for redundancies or attacks on workers’ pay. It seems that while workers must pay the price of short-term production problems there are no issues with paying out large dividends to shareholders. Yet again workers are being asked to pay the price."
She added: “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 northwest economy, and contrasted the company’s decision with recent comments by the US special envoy to Northern Ireland, Joe Kennedy.
She said: "This afternoon’s 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."
A spokesperson for Seagate said: "As noted in our FY23 Q3 Earnings press release on April 20, 2023, Seagate announced a restructuring programme to reduce our cost structure in response to changes in macroeconomic and business conditions.
"These actions include a global workforce reduction, which is one of the most difficult decisions a leadership team undertakes. Our goal is to take these next steps in a thoughtful manner and work collectively with employees.
"Seagate has over 30 years of investment and partnership in NI, establishing the facility as a world leading resource in nano-manufacturing and technology research. The team continues to play a significant role as we invest in mass capacity data solutions driving our future growth."
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