A. Functional leaders were asked to look at their business function to examine and refine their strategic objectives with the goal of reducing OPEX / COGS while increasing revenue and operating income. All groups considered their organizational structure and identified performance capabilities, critical skills, and roles needed to execute on these objectives.
This process resulted in identification of activities and roles that will no longer be performed, or will be reduced. Based on these assessments, management made decisions to retain those employees best suited for the needs of the business going forward. The decision to reduce the workforce is always difficult, and it was made carefully, strategically, and thoughtfully.
5. Will impacted employees receive ICP?
A. Impacted employees will receive 100% of target ICP payout as part of the severance package for the period in which they exit, prorated through their termination date.
6. Will impacted employees receive VIP?
A. Eligible employees on the VIP short-term incentive plan will receive an additional amount of severance in lieu of VIP. This amount will be equal to 100% of their Q1FY16 and Q2FY16 VIP target, prorated through their termination date.
7. What do I do if I get questions from our suppliers, vendors or press about the Reduction in Force?
A. Messaging to customers/vendors was prepared by Corporate Communications and must be strictly adhered to when communicating with customers. Steve Shattuck is handling company communications to our key customers, and his team will be cascading the communication to the rest of our customer base. If you need to inform a customer that a specific employee is no longer with WD, you may do so; however, the communication should be limited to letting the customer or vendor know that the employee is no longer with WD and the contact information for the new contact.