Print 36 comment(s) - last by atlmann10.. on Jan 19 at 12:18 AM

Mandatory pay cuts for everyone else in North America

Embattled AMD will cut 1,100 people and impose mandatory pay cuts on all North American employees. The figure is approximately 9 percent of its global workforce. The good news is that some of the layoffs will come through attrition, so not everyone will be seeing pink slips.

The cuts start from the top, as Executive Chairman and former President Hector Ruiz will see a 20 percent cut in his salary. Many analysts and investors blame Ruiz as the cause of the downfall of AMD, which for a time held a sales and technology lead over Intel in several key sectors. After his seventh consecutive quarterly loss, he was replaced as CEO by Dirk Meyer, who will also see a 20 percent pay cut.

Senior North American executives that are vice presidents or higher will see a 15 percent pay cut. Salaried workers will see a 10 percent cut, while hourly workers will face a 5 percent wage reduction. AMD will also halt its 401(k) matching program.

Last month, AMD took a $70 million charge after laying off 600 workers.

Longtime veterans of AMD have been longing for the good old days of Jerry Sanders, who led AMD for over 30 years. Despite going through several difficult recessions, he often refused to lay off employees, having seen the effects of layoffs that had occurred at Fairchild Semiconductor. Instead of cutting employees, he instituted efficiency programs, such as working on Saturdays and longer shifts.

AMD will also take an additional $622 million write-off on its purchase of ATI, after a $800 million impairment charge last year. AMD paid $5.4 billion to takeover ATI, which it sees as critical in its plans for Fusion products to compete against arch nemesis Intel.

Many layoffs have been announced in the last month, including Logitech, Seagate, and mighty giant AT&T. Earlier today, Circuit City announced that all 30,000 employees will lose their jobs.

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RE: Hang in there AMD!
By FaceMaster on 1/16/2009 10:47:41 PM , Rating: -1
Don't worry. Phenoms are superior to Intel's best offerings by a good 3-4 years. Just you wait, AMD will have its foot of CRUSHING on Intel's pathetic skull within the year.

RE: Hang in there AMD!
By jadeskye on 1/16/2009 10:55:09 PM , Rating: 3
I fear that may be a little too optimistic but the Phenom II X4 is deffinately a gigantic step in the right direction.

RE: Hang in there AMD!
By FaceMaster on 1/16/09, Rating: -1
RE: Hang in there AMD!
By rudolphna on 1/16/2009 11:36:26 PM , Rating: 4
Are you serious right now? Yes. They have performance near or equal to the Core 2 Quads, and overclock just as good, at better price points than their intel counterparts.

RE: Hang in there AMD!
By kilkennycat on 1/17/2009 12:31:52 AM , Rating: 3
It is strongly rumored that Intel is about to cut their Core 2 Quad Penryn prices and squeeze AMD's PhenomII margins ..... For example, the Q9550 is superior in performance to the X4 940 and is expected to drop in price from ~ $316 to ~$267... And the Q9650 is expected to drop from over $500 to ~ $330.

RE: Hang in there AMD!
By gevorg on 1/17/09, Rating: 0
RE: Hang in there AMD!
By kilkennycat on 1/17/2009 3:14:09 AM , Rating: 3
Core 2 (Penryn) does not need higher-priced motherboards nor DDR3. You are confusing Core 2 with the new Core i7 from Intel.

RE: Hang in there AMD!
By William Gaatjes on 1/17/2009 7:55:01 AM , Rating: 2
When it comes to real world performance and dragging large amounts of data around bigger then the 2 caches of the dual die penryn quad cores , the Ph2 wins.

RE: Hang in there AMD!
By William Gaatjes on 1/17/2009 7:57:25 AM , Rating: 3
And the cpu, motherboard + memory are more expensive then a comparable Ph2 offering. Don't believe all the fud. When you want the absolute best, go for the i7 965 core from Intel with matching motherboard and memory. When you want good for a low price go for the AMD Ph2.

RE: Hang in there AMD!
By atlmann10 on 1/19/2009 12:18:57 AM , Rating: 2
They have to Intel's largest competition is INTEL right now there latest core 2's are kicking there own a77. I want to build a new system this year myself. However if I do I am waiting for the Phenom2's with the AM3 chip set and DDR3, or I will build one on the new INTEL when they go to the dropped nm processors. I figure DDR3 and the X58 MB's should have dropped pretty well by then to. I imagine June to August when the price drop hits. I am also sure that sales in general are going to be slower than the norm because of the recession. Hopefully it means a double price drop for newer technology.

RE: Hang in there AMD!
By inighthawki on 1/16/2009 10:59:49 PM , Rating: 2
Im not sure if saying superior to intel's "best" offerings is quite accurate, but the phenom 2s are definitely not a bad chip.

RE: Hang in there AMD!
By bryanW1995 on 1/16/2009 11:06:21 PM , Rating: 2
What the hell are you talking about???? You need to slowly step away from the amdzone and return to reality. Phenom II is a step in the right direction, but it does no better than AT BEST get amd to parity with 45nm penryn-based cpus. Since those came out about 14 months ago, I fail to see how this puts them 3-4 AHEAD.

RE: Hang in there AMD!
By darkblueslider on 1/17/2009 3:51:38 AM , Rating: 2
Troll-feeding :D

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