Seagate CEO gets 25% pay cut along with pay cuts for other managers

Seagate is the largest maker of hard drives and makes products for virtually all categories where magnetic storage is needed from computers to other applications. The company announced this week that it would lay off employees in the face of reduced demand for its products.

Seagate said it would cut 6% of its global workforce, which includes 800 job cuts for the U.S. arm of the company. In all, the firm will be chopping 2,950 jobs from its rolls. It won’t make the employees who have lost their jobs feel any better, but the Seagate CEO will also get a pay cut, by a whopping 25%.

Seagate's former CEO, Bill Watkins, stepped down a few days ago. He is replaced by Seagate Chairman Stephen Luczo. Luczo may be a familiar name to those familiar with Seagate, he was the CEO of the storage firm from 1998 to 2004.

Seagate competitor Western Digital is also announcing job cuts. WD will chop its workforce by 5%. Seagate says that the job cuts will save it an estimated $130 million per year and that the CEO pay cut and cuts in the pay of other managers will save it about $80 million.

Seagate shares fell 29 cents in trading to end at $4.29 per share. Bloomberg reports that Seagate had 54,000 employees globally as of the end of June 2008.

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