Sunnyvale (CA) – AMD announced today it will cut 1100 jobs and trim salaries in an attempt to “navigate the turbulent economic conditions.” AMD will release its financial data on January 22, 2009 at 5:00pm EST.
Hector Ruiz and Dirk Meyer will both have their base pay reduced by 20%, according to AMD. Additional Canada and US employees will receive pay cuts ranging from 5% for “overtime eligible” workers to 15% for vice presidents. AMD’s operations outside of North America will offer “voluntary pay measures consistent with local policies and regulations.” AMD will also suspend matching contributions to worker retirement plans in both Canada and the US.
AMD wrote in their release: “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.”
Intel, AMD’s chief competitor, recently announced an 88% reduction in net profits down to $234 million, and a significant reduction in quarterly revenue – down to $8.3 billion. Intel also posted internal guidance for Q1’2009 which estimates quarterly revenue in the low $7-billion range – though are refusing to state such a forecast publicly in official filings. That figure is only for internal guidance, according to Intel.