AMD to trim 1,100 jobs, initiate temporary pay cuts
Chipmaker plans to reduce workforce by about 9 percent, institute salary cuts of up to 20 percent, as it struggles to manage amid economic meltdown.
Updated at 10:12 a.m. PST, with more information about AMD's financial performance.
Advanced Micro Devices announced Friday it would slash its workforce by 9 percent and institute temporary salary cuts, from its executive chairman on down to hourly workers.
AMD will cut 1,100 positions in the first quarter through attrition and layoffs, as one of its measures to cut costs during these recessionary times.
The chipmaker will also institute temporary salary cuts, with its CEO Dirk Meyer and Executive Chairman Hector Ruiz both taking a 20 percent cut. In the U.S. and Canada, executives that hold a rank of vice president or higher will receive a 15 percent pay cut and salaried workers a 10 percent cut. Hourly workers, meanwhile, will face a 5 percent wage reduction.
Voluntary pay cuts will be sought at AMD's offices outside the U.S. and Canada, as allowed by local governments there.
AMD will also halt its company 401(k) match.
AMD is the latest tech titan to announce a round of job cuts. Earlier this month Motorola announced a 6 percent cut of 4,000 workers, drafting and design software maker Autodesk a 10 percent cut affecting 750 employees, and even search giant Google announced cuts of 100 workers.
AMD's financial performance is under pressure. Last month, the chipmaker warned Wall Street its fourth-quarter revenue would come in significantly lower than previously expected.
AMD is scheduled to report its fourth-quarter results on Thursday.