Contender for CEO Job Resigns From Western Digital

One of the two internal candidates to replace retiring Western Digital Corp. Chief Executive Charles Haggerty has resigned, the company said Tuesday, leaving Matthew Massengill as the sole internal contender for the top job.

Russell Stern, who in August was appointed co-chief operating officer of the struggling Irvine-based hard drive manufacturer along with Massengill, on Monday submitted his resignation effective immediately.

Company officials were quick to point out that the search for a new chief executive continues. The company’s search for a successor to Haggerty is “well underway,” said company spokesman Robert Blair. “Candidates have been identified and interviews are underway.”

Haggerty in July had announced that he would retire next year, and the company has retained Heidrick & Struggles to conduct the search for his successor.

Company officials declined to say what prompted Stern’s resignation or whether it had anything to do with the succession process.

“He had been on a sabbatical the past two weeks considering his options, and today’s announcement reflects the results of that,” Blair said.

Stern, who started with the company in 1994, was not available for comment. Massengill has assumed most of Stern’s responsibilities, including developments of the company’s five lines of business, while Haggerty oversees the company’s strategic business development operations and the chief technology officer.

The company has been in the throes of a three-year industrywide slump in desktop computer storage prices that has obliterated profit margins. It has suffered eight consecutive quarterly losses for a total of $952 million in red ink.