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Seagate Technology is cutting 2,127 jobs in China. The American data storage firm is closing down its disk drive manufacturing plant in Suzhou, Reuters reports.
The job cuts are part of the reduction of its workforce the company announced in July, when it revealed plans to cut 6,500 jobs globally.
Last year, reports speculated that a large proportion of the cuts would take place in Malaysia, as an industry source said Seagate would exit from Penang where the company employs 3,000 staff. Now, it seems over third of the layoffs will take place in China.
Commenting on the news via email, Seagate spokesperson Kelly Zhang told Human Resources: “As part of continual optimisation of operational efficiencies, Seagate has made a difficult decision to shut down its Suzhou factory on January 10th, 2017, and dismiss relevant employees there. We regret that the workforce will be affected by this action.
“The plans to shut down Suzhou are part of Seagate’s commitment, announced in July 2016, to reduce its global manufacturing footprint and better align its business with current and expected demand trends.
“The company has taken several similar actions since that time and will continue reviewing operations and spending, making adjustments as needed to enable us to invest in development of future technologies and position the company for long-term growth.”
With regards to Seagate’s presence in China she added: “Seagate is as always attaching great importance to the China market and considers its Wuxi factory as one of the most important manufacturing bases for the company. We plan to continue investment in the factory to optimise its operation in order to meet the market demands.”
While the computer storage industry is struggling as consumers and businesses shift away from personal computers, other industries are expected to thrive. According to forecasts by the Boston Consulting Group and AliResearch Institute, China’s digital economy is likely to create 415 million jobs by 2035, the South China Morning Post reports.
Although technology would displace low-skilled, menial, and repetitive jobs, the report said it would also create new opportunities.
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