Feeds

Seagate counts cost of closing Scottish factory

Claims it won't be hurt by Dell/IBM deal

  • alert
  • submit to reddit

The essential guide to IT transformation

Seagate is taking a restructuring charge of around $60 million in its current third quarter, including the scrapping of its Scottish factory. The vendor said the one-off $50 million to $60 million charge would pay for the closure of the Livingston plant, consolidation of its customers service facilities and other action it was unwilling to detail. The future of the semiconductor plant had been uncertain since last year. In October, Seagate announced it was looking for a buyer, then later that month decided to sell the plant. At the time the factory employed around 262 people. This number is now down to about 50, production has stopped, and the closure will go ahead in July. The restructure will also include the closure of the two tape repair centres in Irvine, Scotland and in California. This facility will be consolidated in Mexico. The distribution centre, also in Irvine, will remain open according to Ian O'Leary, Seagate corporate communications manager for European operations. O'Leary added that the company would continue in its main business of storage: "Seagate is not a micro-electronics company. This area employed around 260 people, out of 83,000 in Seagate as a whole." He admitted: "The disk drive sector is a very competitive market and the price of storage is continually going down." O'Leary said Seagate would tackle this by concentrating on reducing costs and improving time to market. The US giant denied it would be hit by the IBM/Dell deal announced last week. Seagate previously supplied direct vendor Dell with disk drives, but Dell has announced it buy such items from IBM. O'Leary said: "We retain a very good relationship with Dell. Every indication is that Dell will continue a balanced, multiple-source strategy for their components." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.