Maxtor, the world's largest maker of disk drives is axing up to 1,500 jobs in Singapore and the US.
Maxtor blames the cuts mainly on the weakness of the PC market but says they are also part of the company's restructuring after its merger with Quantum HDD.
"The second quarter has been characterised by weaker than expected demand for hard drives, affecting inventory levels and pricing," Mr Mike Cannon, Maxtor's president and CEO said.
He said the company expected "continued weakness in the PC market." The 700 jobs being shed in Singapore account for 10 per cent of its staff there and are the latest in a series that has left the trade-dependent economy bruised by a global slump in electronics sales.
Singapore's Creative Technology laid off 100 people recently and Aiwa plans to reduce its work force by 250 people in the city-state.
Staff cuts are expected at Philips and at US contract manufacturer Solectron.
Singapore contract manufacturer Flextronics plans to shift production to plants in lower-cost countries in Asia.
Electronics exports account for 60 per cent of Singapore's exports.
Exports of electronic products in April fell 10.9 per cent on the year to 5.16 billion Singapore dollars ($2.8 billion).