AMD hacks another 1100 employees, cuts executive salaries by 20%

Barely two months ago we found that another round of layoffs would land 500 employees at AMD without a job. Now, we're hearing that the chip maker is looking to scale down its workforce by another nine percent, which means that around 1,100 positions will be vacated in Q1 2009. Also of note, the arguably overpaid Executive Chairman Hector Ruiz and his buddy Chief Executive Dirk Meyer will each see "temporary" (what, like a day?) 20 percent cuts in base salary. Oh, and in case you needed a little more doom and gloom with your wine and cheese, the outfit is also suspending its 401(k) company match. Awesome.

[Image courtesy of DavidWSmith, thanks Spencer]

[(Unverified) Posted Jan 16th 2009 1:12PM]

At least these Executives are taking a pay cut (of some kind), bit different from the Banking Executives huh?

[(Unverified) Posted Jan 16th 2009 1:49PM]

Seriously. Makes me have a little more faith when I see there are actually some companies out there who will do what needs to be done.

[(Unverified) Posted Jan 16th 2009 1:54PM]

Why not cut executive salaries by 30-40% and keep all those employees?

[Smart People Play Tuba Posted Jan 16th 2009 2:40PM]

"Hacks" employees?

Odd word usage, considering the blog.

[TheAngryIntern Posted Jan 16th 2009 3:43PM]

yeah, but it's just a cut from their Base salary. You know most of these guys' pay comes from various bonuses. They make 2+ million a year but their base salary is only 200,000.

[compwhiz Posted Jan 16th 2009 1:14PM]

AMD SUCKS!!! HAHAHAH

[(Unverified) Posted Jan 16th 2009 1:26PM]

Yeah!!!!! Intel FTW (except their crap onboard graphics)

[(Unverified) Posted Jan 16th 2009 1:30PM]

We're all screwed in the end if AMD goes under... I hope they can make it out of this...

[iA Posted Jan 16th 2009 2:19PM]

You are both crazy. I'm a huge fan of Intel myself, and have never bought an AMD processor, but if AMD goes under, Intel has no reason to keep prices low or quality high.

[(Unverified) Posted Jan 16th 2009 3:10PM]

Also, intel isn't doing amazing either. In fact, they are doing shitty. Their profits PLUNGED 90%.
http://www.alleyinsider.com/2009/1/intel-profit-plunges-90-on-miserable-demand-intc

[Ryan Trevisol Posted Jan 16th 2009 1:15PM]

wtf hax

[mattssmith Posted Jan 16th 2009 1:19PM]

Makes it sound pretty bad for AMD... hoping my current employer doesn't get any ideas from this. :)

[(Unverified) Posted Jan 16th 2009 1:27PM]

Let's hope so.

[(Unverified) Posted Jan 16th 2009 1:25PM]

Pay cuts and cutting 401k contributions is becoming increasingly common. Motorola, FedEx, Lecroy come to mind immediately. I haven't followed, but its common-place now.

[lulilo Posted Jan 16th 2009 1:31PM]

Fortunately the pay cuts and 401k contribution suspensions are implemented in some of these companies in order to prevent the need to lay off workers. AMD may not necessarily be the case, but they definitely would cut more of the workers if they didn't do this as well.

[(Unverified) Posted Jan 16th 2009 1:26PM]

The title makes it sound so bad, like they're actually chopping up employees they no longer want to pay.

Soylent Green is economically sound?

[finnschi Posted Jan 16th 2009 1:43PM]

I wonder how much more jobs where established, in the same time at intel! I mean those devs gotta go somewhere,...

[(Unverified) Posted Jan 16th 2009 5:26PM]

Intel has a huge number of 'open positions' but as a recent job searcher let me share that those positions are not being listed with any serious intentions of filling them all. A very few of these people may end up there in the short term, but probably not many... unfortunately.

[(Unverified) Posted Jan 16th 2009 1:53PM]

Will Engadget be making cuts?

[(Unverified) Posted Jan 16th 2009 2:35PM]

You mean these guys actually accept money to review all those awesome gadgets. I kid I kid....but seriously Engadget where's my money man? Where's my money?

[magallanes Posted Jan 16th 2009 4:12PM]

The check is in the mail.

:-P

[(Unverified) Posted Jan 16th 2009 1:55PM]

Awesome

[(Unverified) Posted Jan 16th 2009 2:26PM]

They should 2500 Barton the Phenom series.

[GoodBytes Posted Jan 16th 2009 2:47PM]

..."looking to scale down"...
I think the person who suggested that meant *scale down* the processor size, not the company.
j/k
Man, we need AMD... else probably we would still be using P4's or the Intel Core 2 duo would be new now and cost a fortune or two.

[VampireHunterZ Posted Jan 16th 2009 4:32PM]

Ouch. No matter how much you make 20% is a lot. Still worse for those losing their jobs though. Hope this doesn't affect ATI.

[LonnieDVD Posted Jan 16th 2009 5:56PM]

I feel for those AMD guys, it is the do-nothing execs who should get the axe. The company I work for beat AMD to the "suspending the 401(k) company match" idea, and now they are talking about cutting at least 250 jobs at my plant. Since I am not a butt-kisser, I'm afraid that I might be one of the 250 who gets the axe.

[Blackflag486 Posted Jan 16th 2009 6:41PM]

Without AMD you fools are stuck with Cyrix VIA and Intel.. Oh wait.... WOOOPS!

[xnowimcoolx Posted Jan 16th 2009 7:46PM]

CEOs, VPs and execs should be the FIRST to take pay cuts. The same reason that make a lot more money (they have bigger responsibility) should be the same reason they should be the first to cut their pay - the decisions THEY make are the decisions that lead to the company's downfall or uprising.

[(Unverified) Posted Jan 20th 2009 9:28PM]

The average AMD pay is $85K per salarylist
http://www.salarylist.com/all-real-jobs-salary-at-advanced-micro-devices-inc.htm

But many managers get over $120K, fair?

[(Unverified) Posted Jan 21st 2009 9:19AM]

A mid level manager at AMD told me that the they actually "asked" for executive level employees to take a 20% cut,
salary employees to take a 15% cut, and hourly employees to take a 5% cut. All in addition to the suspending the 401k match and layoffs.