Seagate announces 800 job cuts, new CEO

Seagate Technology said on Monday it was cutting its US workforce by 10 percent, equivalent to about 800 people, and that its two most senior executives had resigned.

The company, which is one of the leading suppliers of hard disk drives, has 53,000 workers worldwide, but made no announcement about the future of non-US employees.

At the same time as announcing the job cuts, the company said in a statement that it was replacing its two top managers. Chief executive and chairman Bill Watkins [pictured] resigned on Monday as did Dave Wickersham, who served as president and chief operating officer.

Watkins has been immediately replaced as chief executive by Stephen Luczo, who previously served as Seagate chief executive from 1998 until 2004.

The post of chief operating officer will be taken by Robert Whitmore, who moves over from his current job as chief technology officer.

Although Watkins has resigned as chief executive, according to Seagate he is not immediately severing all links. "Mr Watkins will be advising Mr Luczo in order to ensure a smooth transition [and the two] will confer over the next week to determine what role, if any, Mr Watkins will have at the company going forward," the company statement said.