updated 02:05 pm EST, Fri January 16, 2009
AMD to cut pay, salaries
In its third round of recent cutbacks and job cuts, computer chipmaker AMD will cut 9 percent of its global workforce, amounting to about 1,100 jobs, and lower the pay of existing employees, according to a Friday report. The company announced today 900 workers will be cut, while the remaining 200 or so are a result of attrition and the sale of AMD's business unit. Existing employees will suffer what are called temporary pay cuts, with CEO Dirk Meyer and executive chairman Hector Ruiz getting 20 percent lopped off their salary, while vice presidents and other top management get 15 percent reductions. Salaried workers will make 10 percent less, with hourly workers getting a 5 percent wage cut.
Late last year, AMD cut 600 jobs, in addition to letting go of 1,600 workers earlier in the year. The Intel competitor is struggling from product delays and debt from its purchase of graphics chipmaker ATI technologies in an increasingly touch business climate. Late last year, the company also lowered its outlook for the fourth financial quarter. The company is due to report its calendar fourth quarter results on Thursday.