Seagate takes axe to executives

 

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By Stuart Turton

Posted on 6 Mar 2009 at 11:45

Seagate is to cull 20% of its executives, as it seeks to soften the impact of plunging hard drive sales.

In a filing with the Security and Exchange Commission, Seagate revealed that it plans to cut five senior vice presidents and 17 vice presidents by 4 May.

The most high profile loss will be current consumer products divisional president Brian Dexheimer, who has been at the company for 20 years.

Dexheimer will stay with the company until 30 June, which marks the end of the financial year, to ensure a smooth transition as his duties are distributed among other staff.

The financial details of the split haven't been revealed, with Seagate claiming it is still negotiating with Dexheimer over the terms of its separation agreement.

In January, Seagate abruptly ousted its chief executive, Bill Watkins, and announced the layoffs of 2,950 people, representing 6% of its 53,000 workers.

The layoffs comes as part of new chief executive Stephen Luczo's promise to flatten the management structure, and make Seagate a much more nimble company able to address a difficult market.