The loss of 70 jobs at Londonderry-based Seagate has been described by union bosses as “another devastating blow to the manufacturing industry”.

The company produces a range of computer products, including hard drives; it is cutting staff levels as part of a cost-cutting drive across its global business.

The US-owned company employs around 1,400 people at the Northern Ireland site; the redundancies will be both voluntary and compulsory.

A spokesman said: “As indicated in recent public statements related to our latest earnings announcement, the company is undertaking a number of actions to better position itself for success and growth and to respond to new
demand levels within the industry.

“Unfortunately, the required actions include some reduction in the workforce. It is not easy to make decisions that affect lives in this way, but we believe this is the best way forward for the company right now.”

Since opening in 1993, Seagate has been one of the biggest employers in Londonderry. The company announced a £34.7 million investment in R&D in 2014, focusing on cutting-edge magnetic-recording technology.

However, it has been hit by the growth in solid-state drives and the shift to ‘cloud’ storage services.

SDLP leader Colum Eastwood said the news was “a signal of the deep difficulties faced by our local economy. These are highly trained employees, many with a wealth of experience and expertise; they are exactly the kind of
people that our local economy needs.”

Stephen Kelly, chief executive of Manufacturing NI, said Londonderry can “ill afford the loss of well-paid technology jobs such as these. Despite this news, we are very confident of the long-term commitment by Seagate to its site. The re-structuring seems to be about cementing the company’s place in the market in the face of competition from others.”