Computer chip maker AMD (Advanced Micro Devices Inc) plans to cut 1100 of its workers and decrease some salaries by up to 20 percent. This is the third round of job cuts within the last year for AMD - after laying off 600 employees last month and over 1600 last April - as they continue to try and recover from their expensive aquisition of ATI and a falling share price.
The jobs cuts amount to 9 percent of AMD's global staff, with 900 direct layoffs and the rest coming from the sale of one of their business units and expected retirements. Along with the axing of jobs, some remaining employees will face temporary pay cuts. Its two top executives face pay decreases of 20 percent, with cuts of 15 percent for top management and its vice presidents, 10 percent for some other workers, and 5 percent for hourly workers. There will be voluntary cuts for workers outside of North America. Other money saving actions include suspending contributions to employee retirement plans.
AMD's largest rival Intel recently announced drops in sales and profits, showing that the current economic conditions are hitting both companies quite badly. AMD, who are in the middle of a large restructuring, are due to report their forth quarter results this Thursday and have already warned that sales will be down a third on last year.