AMD to Slash 1,100 Jobs, Cut Executive Salaries

Advanced Micro Devices said on Friday it will cut 1,100 jobs and reduce employee salaries by as much as 20 percent for top executives due to the weakening economy.

CNBC.com

The company, which trails Intel Corp in the computer chip market, said Chairman Hector Ruiz and Chief Executive Dirk Meyer will temporarily take 20 percent salary cuts, while U.S. and Canadian executives at the level of vice president and higher will take 15 percent cuts.

North American employees who are not eligible for overtime pay will take 10 percent cuts, while overtime-eligible employees will see their salaries reduced by 5 percent. It is also implementing voluntary pay reduction measures for employees outside North America.

AMD is also suspending its practice of matching employee contributions to 401(k) retirement plans.

It said the job cuts will reduce its product company work force, excluding foundry workers, by 9 percent and will come from attrition, divesting its handheld business, and the elimination of another 900 positions.

In an e-mailed statement, AMD did not say how much money it expects to save from the actions.

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