Belt Tightening and Rallying Rhetoric

How many of those who just lost their jobs at Seagate are Singaporeans we don’t know. But as the lay off refer to factory operations, these unfortunate probably are from the lower income groups. Unemployment is now at 3.3% and there were 18,800 jobs lost since the start of this year alone. Central CDC has seen an average of 1,100 requests per month for social assistance. Although there are jobs going around, with the crunch, not many are hiring. Is the government doing more? Will this year’s rally speech really rally? Or maybe Singaporeans are not that desperate yet in putting food on the table and are still fussy about getting the right job, despite the recession.

Seagate Technology to lay off 2,000 employees in Singapore

SINGAPORE: Seagate Technology announced on Tuesday it would relocate its hard disk drive manufacturing operations from Ang Mo Kio to other existing Seagate facilities by end-2010, laying off some 2,000 employees in the process.

The company said in a statement that this consolidation is necessary in order for it to further increase efficiency and reduce costs by leveraging investments across fewer manufacturing sites.

The statement also said that Singapore would remain a key strategic partner for Seagate, with a focus on high-value activities, and the company would continue to make strategic investments in the country.

Seagate has two other facilities in Singapore – located at Science Park and Woodlands.

Singapore is home to the company’s only hard drive design centre and first volume manufacturing site outside of the United States, and the first Recording Media Operations facilities outside of North America.

Seagate said its Woodlands media operation, Seagate’s Asia International Headquarters (IHQ), and the Science Park product development and design centre will remain in Singapore.

It said the company is giving every consideration to relocating some Ang Mo Kio employees to other Singapore operations. Employees ending their employment with Seagate will be offered severance benefits, in keeping with company policy.

One Response

  1. […] Singapore recovery slowing: All sectors down except biomedicals – The Sun Shines on Singapore: Belt Tightening and Rallying Rhetoric – Temasek Hedge: Why Singapore Industrial REITS are begging shareholders for more money [Thanks […]

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