Advanced Micro Devices Inc. said Friday that it will cut 1,100 jobs and reduce employee salaries as it tries to weather the weakening economy.
The staff reductions are the third in the past year for the Sunnyvale chipmaker, which is suffering from slumping sales and stiff competition from Santa Clara's Intel Corp.
Under the plan, CEO Dirk Meyer and Chairman Hector Ruiz will have their salaries cut 20 percent starting in February, while other senior executives in the United States and Canada will see their pay slashed 15 percent. Employees ineligible for overtime will get a 10 percent cut; those eligible for overtime will receive a 5 percent decrease. The company said the pay cuts are temporary, but did not specify how long they will last.
Additionally, AMD said it will suspend 401(k) matching for its workers.
The bleak economy has hurt technology equipment makers, and particularly AMD, as consumers buy fewer computers. Product delays and its underdog status to Intel have compounded the company's problems.
The rest of the article available at SFGate.com.
Just more bad news for AMD!