It’s hardly news that the economy is shaky and that companies are axing people, even the chip manufacturers. There have been rumors that both Intel and AMD will cut jobs and now its clear that AMD will reduce the workforce by 1,100 people. This equals about 10% of the total workforce, but unfortunately it doesn’t stop there but the people who get to keep their jobs will get a pay cut.
AMD starts at the top by cutting VP Dirk Meyer’s salary by 20%, and then keep going down the ranks. Executive salaries will be cut by 15 % while the regular office people will get cuts of 10 % and the rest about 5 %.
Bad news for those involved and the question is how much they can cut without losing valuable knowledge and competition advantages. According to AMD the cuts are necessary to reduce costs and improve profitability, so that it can keep competing with arch rival Intel. Whether Intel will reduce the workforce remains to be seen.
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