Seagate Cutting 2,950 Jobs; Reducing Exec Salaries

Seagate (STX) , which earlier this week pushed out CEO Bill Watkins and announced a 10% cut in its U.S. workforce, this morning disclosed that it will cut its global staff by 2,950 people, or about 6% of its total headcount. The announcement includes the previously announced U.S. job cuts. Seagate said in an 8-K filing with the SEC that the restructuring moves will result in pre-tax charges of about $90 million, with most of that to be taken in the December 2008 quarter. The company expects the stafff reductions to save $130 million a year. The company also said it will cut the salaries of its senior staff, with a 25% cut for new CEO Stephen Luczo, “named executive officers” and executive vice presidents, a 20% cut for senior VPs, a 15% reduction for VPs and a 10% reduction for other management, sales, supervisors and professional employees. The savings cuts should save about $80 million annually. STX this morning is down 12 cents, or 2.6%, to $4.46. (link)