Seagate Technology Inc. (NYSE: STX) added a few more details to what it is calling a restructuring plan in a filing with the Securities and Exchange Commission (SEC) on Wednesday, saying it would cut more workers and reduce compensation for top executives and managers. The filing came days after the company ousted its chief executive and chief operating officer in a management shake-up.
The company said in the SEC filing that it is realigning its cost structure with the current macroeconomic business environment and plans to cut its worldwide workforce by 2,950 employees, or 6 percent. That number includes the previously announced plan to cut its U.S. workforce of about 8,000 by about 10 percent.
Seagate said the employee cuts should be mostly completed by the end of its March quarter and would cost the company around $90 million. It projected that the reductions would save the company around $130 million annually.
Many of the remaining workers will see smaller paychecks. Seagate said it will cut the salaries of its chief executive and other executive officers and executive vice presidents by 25 percent, senior vice presidents by 20 percent, vice presidents by 15 percent, and management, sales, supervisors, and professional employees by 10 percent. The cuts will become effective next month and should save the company around $80 million annually, the company said.
Seagate, the world's leading maker of hard disk drives, on Monday said chairman Stephen Luczo would replace chief executive Bill Watkins and chief technology officer Robert Whitmore would replace David Wickersham, who resigned as president and chief operating officer.