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Seagate’s sales have been down for months as demand shrinks for computers that use its drives.
Replacement of Watkins, 56, a 12-year company veteran who became CEO in 2004, reportedly came as a surprise to others in the industry. The new CEO is board chairman Stephen Luczo, 51, who had relinquished the CEO post to Watkins.
The company also accepted the resignation of Chief Operating Officer David Wickersham, Watkins’ second in command. Wickersham was replaced by Chief Technology Officer Robert Whitmore.
The company would not comment on the reasons behind the change. In a statement, Luczo said the company is making “measurable progress toward regaining our long-standing product leadership position across all markets.”
Watkins was not immediately fired. Seagate said it would determine this week whether he will stay with the company in some capacity. Neither he nor Luczo were available for further comment.
Seagate also announced a major salary reduction program, effective in February. The CEO’s pay, last reported at $1,000,002 a year, will be cut by 25 percent, as will those of executive vice presidents and executive officers. Senior vice presidents will take a 20 percent cut, vice presidents a 15 percent cut, and other management, sales, supervisors and professionals will see a 10 percent salary reduction.