AMD confirms paycuts and layoffs

AS WE REPORTED this morning, AMD has announced to employees they will be undergoing imminent layoffs and pay cuts.

A memo, reportedly sent out by CEO Dirk Meyer himself, detailed the extent of the chip firm's damage control, and AMD confirmed the numbers to the INQ moments ago.

AMD noted, "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."

The statement continued "Beginning in February, we are undertaking several steps to lower costs, including temporarily reducing employee base pay and suspending some benefits programs."

It seems even big man Meyer himself will be taking a hit, with AMD confirming that "Subject to the approval of the Compensation Committee of the Board of Directors and execution of an amendment to his employment agreement, CEO Dirk Meyer will be taking a temporary reduction of 20 per cent in base salary."

Meyer won't be the only one having to bite the bullet though. According to Chip-Kong similar salary reductions will be implemented all across the US and Canada, with 15 per cent for VPs and above, 10 per cent for all other non-overtime eligible employees, and 5 per cent for all overtime-eligible employees.

AMD also confirmed to the INQ that outside of North America "voluntary pay reduction measures consistent with local policies and regulations," would be implemented.

The firm noted that whilst these actions were "difficult" they would "allow AMD to better navigate the turbulent economic conditions while protecting our core capability to execute our technology roadmaps and position AMD for long-term success." µ

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