AMD to slash 1,000 jobs

AMD announced Friday it would slash its workforce by nine per cent and institute temporary salary cuts, from its executive chairman down to hourly workers.

AMD will cut 1,100 positions in the first quarter through attrition and layoffs, as one of its measures to cut costs during the recession.

The chipmaker will also institute temporary salary cuts, with its CEO Dirk Meyer and executive chairman Hector Ruiz both taking a 20 per cent cut. In the US and Canada, executives that hold a rank of vice president or higher will receive a 15 per cent pay cut and salaried workers a 10 per cent cut. Hourly workers, meanwhile, will face a five per cent wage reduction.

AMD is the latest tech titan to announce a round of job cuts. Earlier this month Motorola announced a six per cent cut of 4,000 workers, drafting and design software maker Autodesk a 10 per cent cut affecting 750 employees, and even search giant Google announced cuts of 100 workers.

AMD's financial performance is under pressure. Last month, the chipmaker warned Wall Street its fourth-quarter revenue would come in significantly lower than previously expected.

AMD is scheduled to report its fourth-quarter results on Thursday.

Original article: AMD to trim 1,100 jobs, initiate temporary pay cuts from CNET News.com