Seagate to close plant, lay off 2,000

Hard drive manufacturer Seagate has reported that it will lay off 2,000 workers in Singapore – over 4% of its global workforce. It will close manufacturing facilities in the city-state in an effort to reduce spending by $40 million a year. The company said its decision would result in restructuring charges of $80 million in total, $60 million of which will be dished out in severance pay and up to $10 million for the relocation of equipment.

Seagate is expected to move its hard disk operation at Ang Mo Kio to facilities in other countries including China, Malaysia and Thailand. The plant located in Ang Mo Kio is on course to close by the end of 2010. Its closing furthers the unemployment rate in Singapore which stood at 3.3% in the second quarter, and grew by 12,400 people in April through June – twice as much as in the first quarter.

Seagate’s announcement today follows its move to initiate a restructuring plan in May, which included the shedding of 1,100 employees.