Seagate swings hefty axe at execs
Brian Dexheimer, 22 others jettisoned
Seagate has given several execs the boot, including consumer products divisional president Brian Dexheimer, whose division's products didn't exactly set the world on fire.
According to an SEC filing Dexheimer will leave his post at the end of the financial year, June 30, to effect a smooth transition, following which there will be a to-be-negotiated separation agreement, presumably with no-compete clauses. After 20 years at Seagate, this will be a body blow.
A total of five SVPs and a whopping 17 VPs will go, a fifth of the VP and SVP ranks at Seagate. This is an executive bloodbath caused by Seagate's recent red ink and follows the ousting of ex-CEO Bill Watkins, a ten per cent staff cut, facility consolidation and Barracuda quality problems.
CEO Stephen Luczo's purpose, in this dismantling of the Watkins empire, is to save costs, increase spans of control and flatten management. He wants Seagate to be less sluggish and move much more quickly to address its problems and opportunities in future.
The 22 will leave Scotts Valley on May 4 and their names are not being released. ®