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AMD to Cut 1,100 and Slash Salaries

AMD announced last Friday that they will soon cut 1,100 positions in an effort to reduce costs.  900 of those will come through cuts across all levels of its product business and a further 200 positions will come through attrition and by divesting its handheld business.  However, this will not affect any of the 3,000 employees recently spun off into a separate foundry operation.

Officials at AMD also announced a series of salary cuts across the board.  Vice presidents will be slashed by 15%, employees not eligible for overtime will be docked 10% and those eligible for overtime will take a 5% hit.  Similar cuts will occur outside of North America.  Alongside the salary cuts, AMD will also suspend matching 401K contributions for US employees and delay implementing the Canadian Registered Retirement Savings Plan.

This doesn’t come at a good time for AMD.  They released their Shanghai series of Opteron processors earlier than expected, but have been somewhat overshadowed by Intel’s new Core i7 technology.  However, who hasn’t been affected by the harsh economic times?  HP, Sun, SGI and many others have already cut costs and slimmed their respective workforce.  Only time will tell how well AMD and others will come out.

For more info, read the full release here.

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