Tuesday, August 4, 2009

#85- Seagate Technology Singapore to retrench 2000 employees

Seagate Technology, hard disk drive manufacturer, has 3 facilities in Singapore, namely: Woodlands, Ang Mo Kio and Science Park.

Seagate Singapore has announced that they are going to lay off 2000 employees in Ang Mo Kio plants by end of 2010. Ang Mo Kio plant is principally involved in disk drive manufacturing. Employees being laid off will be offerred retrenchment benefit in line with industry standard.

In our opinion, the shifting of manufacturing operations out from Singapore is in line with general industry trend. In recent years, Singapore entities tend to shift their production plant out from Singapore, especially those labour-intensive manufacturing process, to China, Thailand, Malaysia. This is because labour costs are much lower in those countries, and the Singapore entities will be able to achieve cost savings in medium term.

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