backtop


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By crystal clear on 1/17/2009 2:33:51 AM , Rating: 2
quote:
The cuts start from the top, as Executive Chairman and former President Hector Ruiz will see a 20 percent cut in his salary.


Too little ...Too late ... is the right summarization of this cost cuts that AMD intends to implement.

This should have been done one full year ago namely 1Q 07 or even earlier 4Q 06.

If it had been so,today AMD would have been in much better position today to tackle the recession that will stay on for quite a long time.

If & when you do see an economic recovery it will be only after 2H 10.

Now AMD needs to implement even more drastic solutions namely-

1) Hector Ruiz has to be FIRED immediately - his job titles & duties are NOT necessary & can be handled by the CEO namely Dirk Meyer.

This will mean an additional charge AMD has to take on to payout this HUGE compensation package or commonly refered as the "golden parachute".

This also will mean a HUGE COST CUT or savings,that will reflect on the AMD's balance sheet. making AMD cost efficient.

This will also enable or free up funds for additional R&D & other essential areas where employees can be retained & or spared of salary cuts of 10%.

2) Senior North American executives that are vice presidents or higher should get a 30 percent pay cut.

3) All employees NOT involved in manufacturing & R&D & or non essential staff, should be switched to a 4 day week programme instead of the 5 day week currently used.

Manufacturing & R&D should have an efficiency programs, such as working on Saturdays and longer shifts ,nstead of cutting employees.

The attitude in AMD should be-

"Work your way up or rust your way out."


A message for Dick Meyer-

"There is no better sign of a brave mind than a hard hand."

"Real communication is impossible without listening."

"Money never starts an idea; it is the idea that starts the money."




By crystal clear on 1/17/2009 5:34:41 AM , Rating: 2
The D.T

This below is the correct version of the story-

AMD, which trails Intel Corp (INTC.O) in the computer chip market, said the salary decreases range from 20 percent for its two top executive to 5 percent for lower level employees in North America and voluntary pay cuts in other regions.

As part of its cost cuts, it 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 pay reduced 5 percent. It is also implementing voluntary pay reduction measures for employees outside North America.

http://www.reuters.com/article/marketsNews/idUSN16...

Compare the D.T. article & the above - you will see for yourself the difference.

The Reuters story is the correct version.


By Viditor on 1/17/2009 7:07:22 AM , Rating: 2
Ummm...I think it should be noted that Hector is leaving AMD very soon to head up the new Fab Co.


"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il

Related Articles
Seagate Will Cut 2,950 Jobs
January 15, 2009, 12:55 PM
Logitech to Cut 15% of Global Workforce
January 7, 2009, 10:33 AM
AMD Sheds More Workers
December 30, 2008, 12:48 PM
AT&T Slashes 12,000 Jobs
December 4, 2008, 8:32 AM













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki