Sunnyvale (CA) – The IT Examiner reportedly has obtained the text of an internal memo sent to employees by Dirk Meyer, AMD’s President and CEO. The text of the letter sums up the reasoning behind AMD’s recent announcement that it would lay off 1100, reduce salaries and stop retirement plan contributions (see our prior coverage).
Below are some excepts:
“The last few months have been humbling for virtually every company in every industry around the world. Global demand is down dramatically. And uncertainty about both the timing and intensity of a potential recovery has risen. This combination has made our goal of regaining profitability and free cash flow more difficult – and more important – than ever.
Meanwhile, we are weathering a monster of an economic storm, one that requires additional swift action and some very difficult decisions. First, we are going to have to further reduce our headcounts and our budgets immediately, to help meet a new, lower breakeven target.
I know this will be a personal sacrifice for all of you, but at the same time I know you want to limit headcount reductions as best we can in order to preserve investments that will drive our future success. I also want to emphasize that these actions are temporary, and we will revisit them every quarter and will begin reversing them when business conditions and financial performance return to acceptable levels.”
See IT Examiner.