Overland Reduces Workforce by 17% and Salaries by 10%

Here an abstract of a SEC filing by Overland Storage, Inc.

On January 9, 2009, we determined to reduce our employee workforce by 17% worldwide, or by 53 employees, in accordance with our initiatives to reduce costs and restructure our workforce. These reductions were in addition to the reduction of 11 employees in December 2008. Severance costs related to the terminated employees are estimated to be $730,000 and will be recorded and paid in the third quarter of fiscal 2009.

On January 9, 2009, we implemented an across-the-board pay cut of 10% for all of our salaried employees, including each of our executive officers (Vernon A. LoForti, Kurt L. Kalbfleisch, W. Michael Gawarecki and Ravi Pendakanti). We anticipate this pay cut will remain in effect until the company improves its performance and achieves profitability. Other benefits to the executive officers based on base salary, including under their retention agreements, will not be affected by this reduction.

Our compensation committee is considering implementing a salary recapture plan through which each employee may earn a bonus equal to or exceeding the foregone salary depending on company performance.