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
I wouldn't be surprised to see workforce cuts from Intel pretty soon. Here is an article from Chicago Tribune from few days ago. Intel earnings drop 90% as chip sales fall
At the same time, I can actually see AMD going out of business be end of the year if the economy doesn't get any better or if their Abu Dhabi investors decide NOT to throw more money their way.