Hard disk drive manufacturer Seagate has announced plans to cut approximately 2,950 jobs globally as part of a restructuring plan to realign its cost structure with the current business environment.
The job cuts include the company’s previously announced 10% reduction of the US workforce. The company said the plan will be completed by the end of the March quarter. It expects to incur total pretax charges of approximately $90m and to generate cost savings of approximately $130m annually.
The company also announced plans to cut salaries. It will reduce the salaries of its chief executives, named executive officers, and executive vice presidents by 25%. For vice presidents, it will reduce pay by 15%, and for management, sales, supervisors, and professional employees by 10%. It said the pay cuts will become effective in February 2009 and will generate savings of approximately $80m annually.
The company last month slashed its outlook for the current quarter and announced a temporary company-wide shutdown. In October it reported net income of $60m for the first quarter 2009, against $355m in the year-ago quarter, on revenue down 8% at $3.03 billion.