SanDisk Corp. said Friday it will cut about 10 percent of its staff, slash the CEO's salary by 20 percent and freeze salaries for the rank and file.

Milpitas-based SanDisk (NASDAQ:SNDK), the world's largest supplier of flash storage card products, said industry-wide NAND component pricing has deteriorated by about half in the past two months because of an excess supply and a seasonally weak demand. The company also said it expects to lower first-quarter prices for many products by 30 percent to 40 percent.

The company said it is instituting a cost-cutting plan that includes: A worldwide reduction the work force of up to 10 percent, or about 250 employees. The cuts will primarily occur in early March, affect all areas, and reflect a decision "to de-emphasize the USB private label business in favor of the more profitable SanDisk branded business," the company said. A reduction in salaries for all executives, including a 20 percent cut in base pay for CEO Eli Harari, 15 percent for the president and executive vice presidents, and 10 percent for other vice presidents.

The company said it expects the measure to save $30 million to $35 million a year. SanDisk said it expects to incur a restructuring charge in connection with the staff cuts in the range of $15 million to $20 million, with the majority of the expense occurring in the first quarter of 2007.

"We believe that lower price points in the NAND industry will accelerate demand, particularly in the handset market, and will stimulate the emergence of new markets, fueling continued growth," Harari said.