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Seagate and Western Digital to cut jobs in Malaysia

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In addition to restructuring plans announced on 29 June, Seagate has provided details on an additional restructuring plan which includes the reduction of about 6,500 employees from the disk drive maker’s global headcount – about 14% – by the end of fiscal year 2017.

This consolidation was announced together with its fiscal fourth quarter and year-end 2016 revenue forecast and is expected to affect its employees across Asia, EMEA and the Americas.

According to reports by New Straits Times, Malaysia is likely to be affected by this round of layoffs, with Penang set to be the hardest hit.

Business Times has learnt that Seagate will exit from Penang and Negri Sembilan. The Penang facility is said to have over 3,000 Malaysian staff,” New Straits Times wrote. “Seagate’s operations in Senai, Johor, will remain for now,” an industry source told New Straits Times.

Seagate is also allegedly putting up its Bayan Lepas facility for sale, along with a 16.4ha land in Batu Kawan on mainland Penang where it had announced two years, of its expansion.

It is also expected to wind up and transfer its operations to Korat in Thailand in the fourth quarter of next year. Seagate’s main manufacturing facilities are based in Malaysia and China, with some in the United States and the United Kingdom.

“Seagate’s investment history in Malaysia dates to 1988 and the largest layoff the company underwent in Penang was over a decade ago when some 4,000 people were laid off,” New Straits Times wrote.

New Straits Times also reported that Western Digital Corp (WD) is expected to lay off 400 Malaysian staff and 800 foreign workers from its Penang manufacturing site.

“Sources also said WD will begin to ramp down its slider operations from August as it prepares to move to Thailand,” New Straits Times wrote.

Both Seagate and Western Digital have not responded to queries by Human Resources at the time of publication.

Image: Shutterstock

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