Seagate Cuts 2950 Jobs, Slashes Executive Salaries

[w¡n9Nµ7 §£@¥€r 123]

In a Wednesday filing with the Securities and Exchange Commission, [seagate Technology] said it would reduce the number of employees worldwide by 6%, or about 2,950 people.

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Seagate said it would slash the salary of its executive officers, including the CEO and executive VPs, by 25%.

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The company said it would cut the salaries of senior VPs by 20%; VPs, 15%; and management, sales, supervisors, and professional employees, 10%. The salary reductions are expected to take effect in February.

The estimated savings from these cuts is expected to amount to $80 million annually, Seagate said. The job cuts, which are set to be mostly completed by the end of March, are expected to reduce costs by $130 million annually.

http://www.informationweek.com/news/storag...subSection=News

[Ban Hammer 14,573]

first time i've seen a company say they are cutting the top's salary.

[w¡n9Nµ7 §£@¥€r 123]

first time i've seen a company say they are cutting the top's salary.

Typically, a tech company has a lot more "professional employees" than executives. Note all professional employees are also getting a 10% haircut. I suspect the savings from that eclipses the savings they're getting from cutting executive salaries. I further suspect the executive paycut is cover for the larger, more helpful, professional employee paycut.

Seagate said it would slash the salary of its executive officers, including the CEO and executive VPs, by 25%.

...

The company said it would cut the salaries of senior VPs by 20%; VPs, 15%; and management, sales, supervisors, and professional employees, 10%. The salary reductions are expected to take effect in February.

[Ban Hammer 14,573]

first time i've seen a company say they are cutting the top's salary.

Typically, a tech company has a lot more "professional employees" than executives. Note all professional employees are also getting a 10% haircut. I suspect the savings from that eclipses the savings they're getting from cutting executive salaries. I further suspect the executive paycut is cover for the larger, more helpful, professional employee paycut.

Seagate said it would slash the salary of its executive officers, including the CEO and executive VPs, by 25%.

...

The company said it would cut the salaries of senior VPs by 20%; VPs, 15%; and management, sales, supervisors, and professional employees, 10%. The salary reductions are expected to take effect in February.

i don't doubt what you say - but still, it's the first time i've seen a company trim everyone. at least they aren't just shafting the workers like so many other companies are doing now.

[w¡n9Nµ7 §£@¥€r 123]

Agreed!

[Donna A 4]

Rick Wagnor and crew....take note.

[w¡n9Nµ7 §£@¥€r 123]

Rick Wagnor and crew....take note.

"Professional employees" are the grunts in a tech company. They're the ones who make the product. Without them, the company makes nothing.

Kinda like the union employees at GM. Will those union employees take a 10% haircut?

Of course not. And that's why Detroit must die.