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Seagate lays off 187 in Longmont, 3,000 worldwide
(Daily Camera (Boulder, CO) Via Acquire Media NewsEdge) Jan. 15--Hard-drive maker Seagate Technology on Wednesday morning notified 187 employees at its Longmont campus that they will be laid off as part of the company's plans to save money in a weakened economy.
The cuts represent about 11 percent of the 1,650-person site.
Also, nearly everyone who is left at the Longmont site will have a pay cut of at least 10 percent as part of the company's plans to reserve cash, said Cindy Martini, a local spokeswoman.
The layoffs are "pretty much across the board," affecting a variety of disciplines, Martini said.
"This morning we had a message from our new CEO, Stephen Luczo, talking about the hardships that our customers have faced and the pressure Seagate has faced in the economic downturn as a result of that," she said. "We need to cut back on expenses, try to gear up for the challenges ahead."
On Monday, Seagate officials disclosed in a Securities and Exchange Commission filing plans to lay off 10 percent of the company's U.S. work force, or about 800 employees. That was followed on Wednesday by another SEC filing noting the company's plans to lay off 2,950 people worldwide by the end of March.
The global layoffs, which include the previously disclosed 800 U.S. jobs, account for about 5 percent of the company's 54,000-person work force.
The 187 layoffs in Longmont should be the extent of the reductions there, Martini said.
The employees notified Wednesday will continue to be on the payroll through March 16 and will receive severance packages based on their time with the company, she said.
Starting next month, Seagate also plans to cut some of its salaries, including a 25 percent decrease for its chief executive officer, 20 percent for senior vice presidents, 15 percent for vice presidents and 10 percent for management, sales, supervisors and professional employees, according to the filing.
Most of the employees at the Longmont facility fall within the 10 percent-pay-cut category, Martini said, adding that there are several vice presidents who will have a 15 percent pay cut and at least one senior vice president who will be taking a 20 percent pay cut.
Between the layoffs and salary reductions worldwide, Seagate expects to save about $210 million annually, the company said.
Shares of Seagate (Nasdaq: STX) -- which is based in the Cayman Islands and is operated out of Scotts Valley, Calif. -- fell 29 cents, or 6.3 percent, to close at $4.29 on Wednesday.
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Copyright (c) 2009, Daily Camera, Boulder, Colo.
Distributed by McClatchy-Tribune Information Services.
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