Seagate Technology, the Cayman Islands disk drive maker that operates out of Scotts Valley, today announced that it is terminating five senior vice-presidents and 17 vice-president-level employees, which represent about 20 percent of Seagate’s vice-president-and-above-level positions.
The terminations, which take effect on May 4, “represent steps taken by (Seagate) to realign its overall management organiztion and reduce costs while increasing spans of control and decreasing managment layers to support the business outlook going forward,” according to its regulatory filing with the SEC today.
Also leaving is one of the company’s top officers, Brian Dexheimer, who was named division president to Seagate’s consumer solutions group just about this time last year after having served as the company’s chief sales and marketing officer. Dexheimer was appointed to the position of division president of the consumer solutions group on March 10, 2008. Previously he was chief sales and marketing officer from 2006 to 2008. He first joined the company in 1997.
So as “to ensure a smooth transition of his responsibilities,” Dexheimer will remain employed with the company through its fiscal year, which ends in June. Details about his severance package are not available because its terms “are still under negotiation.”
In January, Seagate said it would lay off nearly 3,000, or about 10 percent, of its workers, and lower salaries for its executives, and even reduced its dividend by 75 percent, all in an effort to preserve cash. Those moves came after the return of Steven Luczo as Seagate’s chief executive following the termination of the company’s previous CEO, Bill Watkins.