More AMD layoffs impact 1,100, execs to get pay cuts
The news is no better for AMD, which today confirmed it is letting go of 9% of those remaining employees who are not being transferred to The Foundry Company -- 200 by attrition, and an additional 900 by traditional termination.
This is in addition to the 600 being let go internationally announced last November (the original estimate was 500), and 1,600 whose "transitioning out" began earlier in 2008.
AMD spokesperson Michael Silverman told the press after the close of trading today, "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...Beginning in February, we are undertaking several steps to lower costs, including temporarily reducing employee base pay and suspending some benefits programs."
Executive chairman Hector Ruiz (who also heads The Foundry Company) and CEO Dirk Meyer will also give themselves 20% pay cuts, though their base salaries have not been made public. Vice presidents will receive 15% pay cuts, and lower managers will receive lesser cuts.
It's worth asking at this point whether AMD will be able to carry out its ambitious transition plan away from the 45 nm generation of CPUs, with maybe only three-fourths the staff it had two years ago.