450 staff forced to take pay cut at Seagate

More than 450 employees at US-owned technology company Seagate are having their pay cut by 10% as the company battles to cope with the global downturn, it was announced today.

Seagate told a mass meeting of workers at the Springtown plant in Derry that the pay cut was for all management, sales and professional employees worldwide – impacting on about one-third of the 1,400 workers employed at the plant.

Senior management globally – vice-presidents and above – will take pay cuts of between 15% and 25%, said Seagate.

There had been fears of redundancies among workers, but the company said fewer than five people at the plant were expected to be affected by redundancies as the company makes approximately 2,950 job cuts worldwide.

Seagate said it “very much regrets having to take these actions”.

But it added: “They are necessary to lower the company’s cost structure to align with the current macroeconomic business environment.”