Seagate to Close China Factory, to Cut Over 2,000 Jobs
US hard disk drive maker Seagate Technology is axing 2,000 people from its workforce as it closes down its Suzhuo factory in eastern China because of "sluggish market demand," the company revealed on Friday.
"As part of our continual optimization of operational efficiencies, Seagate has made the difficult decision to shut down its factory in Suzhou, China," an alleged statement from Seagate read.
Like Us on Facebook
"We regret that our Suzhou employees will be affected by this action, which reflects our ongoing commitment to reduce Seagate's global manufacturing footprint and better align the business with current and expected demand trends."
Factory workers outraged as they received the closure notice only last Saturday and were told that they would be laid off in a week's time, the Paper reported.
Employees reportedly held rallies on the street demanding for better compensation as they claimed that Seagate is still profiting, according to local news site guancha.com on Thursday.
"At the very least, the company should hold a meeting with us workers. They should make clear to us how compensation will be dealt with, at what point wages will be cut off, and whether the company is being relocated or shut down," one of the laid off workers told the Paper.
According to Global Times, the initiative, which was announced in last July, is part of Seagate's corporate strategy to chop down is production scale globally.
Seagate, however, brushed off speculations that the massive layoff was in line with President-elect Donald Trump's goal to bring US factories back home.