Saturday, January 17th 2009
AMD to Slash its Workforce by 9 Percent, Initiate Temporary Pay Cuts
The Sunnyvale, California-based Advanced Micro Devices said on Friday that it plans to layoff 1100 of its workers on a global scale and reduce the month payments for the remaining employees of the company. This is the third round of major layoffs in the last year and represents a reduction of the working personal by 9 percent. AMD cut 600 workers last month, and earlier in 2008 jettisoned 1600 employees of the company. Payments of the workers and the head-staff will also be temporary reduced. AMD's CEO Dirk Meyer and executive chairman Hector Ruiz, the former CEO, will see their salaries slashed by 20 percent. Vice presidents and other top management will have their pay cut 15 percent, other salaried workers will go down 10 percent, and pay for hourly workers will fall 5 percent. After it bought ATI, AMD is in the middle of a big company restructuring that in some ways leads to all these unfortunate events. Additionaly, the world financial crisis makes everything even worst. Yesterday, Intel also reported a drop in its forth-quarter financial results.
Source:
Yahoo! Tech
29 Comments on AMD to Slash its Workforce by 9 Percent, Initiate Temporary Pay Cuts
Maybe they are even laying off proofreaders these days.
im not saying ati will die but its starting to look like it.
I just think that whole aqusition of ATI was a big mistake for AMD and they did it at the worst possible time. Right after Core2 was launched and AMD dominance ended. If anything they should've done it a year or two earlier. But not buying ATI at all would've been the best move. Thats what literally put them in the financial hole they are in today. I mean if they needed a chipset division they could've built one up themselves and it would've cost them a lot less than $5 billion ATI cost em.
I think AMD/ATi is here to stay. With Intel planning on holding back CPU launches and various motherboard manufacturing company issues, AMD/ATi have plenty of time to focus on the research they need to contend on an even playing field.
AMD makes alot of products, they have sold off less profitable devisions in the past, they have had layoffs in the past.
amd isnt on top in the ENTHUSIST MARKET today, but the OEM market and server markets are looking much better for them.
go check places like bestbuy, many times the amd quadcore systems cheaper then intels, and has better componants, its not selling at a loss, and many people i know have relitives who have picked up the amd quads because the price was ALOT better then the intel systems that where offered.
Why do people think the enthusist markets really so important, its a SMALL % of the buisness for eather company, yeah it gets more word of mouth and reviews in mags, but most people who run out and buy a computer do not read such mags or reviews, they just go to the store, and mess with display models and buy whatever looks best to them and what the sales person recomends.
Im not worried about AMD dieing, Intel dosnt even want that, IF that happened intel would be sued for monopoly again since there are no other cpu makers with any meaningfull % of the market.
Intel needs AMD they just want them to be beat down so they cant pull another athlon out of the box
Simply put, if you are the leader of the pack for an extended period of time, it translates to better sales up and down the product lines.