AMD: Putting the Micro Back in Advanced Micro Devices
“Difficult, but prudent, actions.” That’s how AMD describes its decision to sack 1,100 employees and reduce the base pay of those who remain. Come February, the chipmaker will reduce its workforce by roughly nine percent. It will suspend its 401(k) match for employees. It will reduce the salaries of vice presidents and other execs by 15 percent, the salaries of overtime-ineligible employees by 10 percent and those of executive chairman Hector Ruiz and CEO Dirk Meyer by 20 percent.
More ugly news for a company that suffered through a 10 percent workforce reduction last April and another three percent cut in November. Said a company spokesman, “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.”
Hope so. Right now AMD (AMD) shareholders are sitting on upward of 90 percent losses.
[Image Credit: Someecards]