A GMR read pillar formed by ion milling has both vertical and sloping sidewall sections with the free layer normally being located within the latter. Using xenon as the sputtering gas enables the vertical section of the pedestal to be made longer, relative to the sloping portion, without requiring an increase in the sputtering rate, so the free layer can have vertical sidewalls. This allows the point at which milling is terminated to be controlled more precisely and, by more precisely defining the width of the free layer, also improves design tolerances.