AMD plans to cull 9% of staff
Remaining staff to see temporary cut in pay, including CEO and executive chairman
AMD has announced plans to cut 1,100 jobs, representing 9 per cent of its global staff, and slash the remaining employees' pay.
After completing plans to sell off its manufacturing operations, AMD is left with 12,000 workers, which are to face the job cuts, according to the Associated Press.
Salaries for surviving workers will shrink temporarily, including AMD's CEO Dirk Meyer and executive chairman Hector Ruiz, who will see their wages cut short by 20 per cent. Vice presidents and other top management will face a pay cut 15 per cent, other salaried workers will go down 10 per cent, and employees paid by the hour will see a reduction of 5 per cent.
This represents the third such staff cut in the past 12 years and, following the announcement, AMD shares fell USD 0.2, or 0.9 per cent, to USD 2.24.
AMD has suffered since being saddled with the USD 5.6 billion debt from the acquisition of ATI Technologies, which the company also wrote down USD 684 million of its value. The company's recent devaluing, when combined with the previous value cut of USD 2.5 billion, means that ATI is now worth less than half of what AMD paid for it.
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