Chip-maker Advanced Micro Devices said on Jan. 16 it will lop 1,100 jobs and trim salaries to "navigate the turbulent economic conditions." In February, Calif.-based AMD will begin reducing its global workforce by 9%, and cutting the pay of remaining workers and eliminate some benefits.
AMD board chairman Hector Ruiz and chief executive Dirk Meyer will have their base pay shrink 20% each, according to the firm.
"As a result of the continuing global economic downturn, we have determined that we need to take difficult, but prudent, actions designed to reduce our costs," AMD said. "These actions, while difficult, will allow AMD to better navigate the turbulent economic conditions while protecting our core capability to execute our technology roadmaps and position AMD for long-term success."
Pay cuts for AMD employees in the U.S. and Canada will range from 5% for "overtime eligible" workers to 15% for vice presidents. At AMD operations outside of North America, there will be "voluntary pay reduction measures consistent with local policies and regulations." AMD will also suspend matching contributions it typically makes to worker retirement plans in the U.S. and Canada.
Copyright Agence France-Presse, 2009