Seagate replaces CEO, plans to cut 800 workers

[Chilly]

Seagate Technology has replaced its top two executives and said it plans to cut 800 jobs -- 10 percent of its U.S. work force -- as the hard drive maker endures a bruising slowdown in technology spending. Its stock fell more than 15 percent.

In a surprise move, the Scotts Valley-based company announced Monday that William Watkins, 56, Seagate's chief executive since 2004, and Dave Wickersham, 52, the president and chief operating officer, had both left the company, effective immediately. Seagate declined to make either executive available for comment.

The company also announced that it plans to cut 10 percent of its 8,000 U.S.-based workers. It has 53,000 workers worldwide.

A familiar face will fill the CEO slot. Stephen Luczo, 51, a former investment banker who served as Seagate's CEO from 1998 until 2004 amid a wrenching restructuring, will have to engineer another big turnaround to get the company back on track..........

Seagate replaces CEO, plans to cut 800 workers - Yahoo! Finance

[DarKStar]

Oh God I can see what people are going to say now :-))))

[enaberif]

Originally Posted by DarKStar

Oh God I can see what people are going to say now :-))))

"YAY! Finally Seagate will get back on track"?

[DarKStar]

LOL no not quite - Back on track to what exactly ? They are cutting jobs, so of course they will cut quality even further right ? ;-)

Mind you, there might be some truth to that you know - it's a sad reality and it's not just Seagate but every company now to remainc ompetitive and keep its current prices, something has to take a hit somewhere, and it's quality - and to be honest I don't think this cutting measure will have any more impact on quality than there is now - the cutting of corners is something that was done a long time ago - not just now!

;-)

[Chilly]

Calm down guys, I see this as a good move, This new CEO is the same one that made Seagate into the beloved brand it is.

As for the job cuts, well the WHOLE industry been hit, its not just Seagate, don't forget WD just cut jobs as well(2500 if I remember correctly) due to lack of work/orders. WD, even with the cuts are improving their quality and offerings, I expect the same from Seagate.

It has NOTHING to do with cutting corners, wither Seagate cuts corners or not has NOTHING to do with the job cuts.

[Eagle Eye]

Exactly and I am inclined to agree with Enaberif and chilly its a step in the right direction.

[Phobia]

Good. I hope that they can restore their quality quickly