Senior managers at Creative Technology's Singapore headquarters have agreed to take a 10 percent to 20 percent pay reduction as part of the company's ongoing cost cutting, CEO Sim Wong Hoo said Friday. The company, known for its Sound Blaster cards for PCs and Nomad Jukebox MP3 players, is also starting a hiring freeze globally to help return the company to profitability.
The salary cuts follow Creative's cost cutting in March, when it laid off 10 percent of its 5,500 staff worldwide and closed a plant in Pennsylvania. Creative also announced its results for the fiscal year that ended in June, reporting a higher-than-expected net loss of $130.4 million, including a $148.5 million write-down on its investments in technology companies. This compares with earnings of $161 million in the previous fiscal year.
CNET Singapore's Irene Tham reported from Singapore.