Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Networking
    • PC Hardware

    AMD to Cut 1,100 Jobs Due to the Economy

    By
    Scott Ferguson
    -
    January 16, 2009
    Share
    Facebook
    Twitter
    Linkedin

      Advanced Micro Devices is preparing to cut an additional 1,100 jobs as the chip maker struggles in an economy that has seen both business buyers and consumers cut down on their purchases of desktops, laptops and other hardware in the last three months.

      In addition to the latest round of job cuts, AMD announced Jan. 16 that the company’s two top executives, CEO Dirk Meyer and Executive Chairman Hector Ruiz, would have their base pay temporarily slashed by 20 percent while other employees would take pay cuts of 10 or 15 percent. AMD also announced that it would temporarily stop contributions to its employees’ 401(k) accounts.

      The pay cuts and job cuts will start in February. After that, AMD will revisit the temporary pay cuts and 401(k) contributions every quarter, a company spokesperson told eWEEK.

      “I can confirm that as a result of the continuing global economic downturn, we have determined that we need to take difficult, but prudent, actions designed to reduce our costs,” Phil Hughes, an AMD spokesperson, wrote in an e-mail.

      Right now, AMD has about 12,000 employees worldwide and the latest reductions equal about 9 percent of its total work force. That number does not include those employees that will go to work for The Foundry Company, the spinoff of AMD’s manufacturing facilities announced in 2008.

      AMD also announced in December 2008 that it would eliminate 600 positions.

      The latest announcement from AMD is another sign of how the recession in the United States and the sluggish global economy are affecting the IT industry as businesses continue to cut back their purchases of desktops, laptops, server systems, networking equipment and other hardware. A report from Forrester Research suggests that businesses will continue to reduce their IT spending in 2009 and the industry will not recover until at least 2010.

      In addition, companies such as Intel, AMD and Nvidia are dealing with the fallout of reduced consumer spending on items such as laptops, which helped fuel the PC market for the last several years.

      Intel, AMD’s main rival in the x86 processor market, announced Jan. 15 that its fourth-quarter 2008 profits had sunk to $234 million or 4 cents per share after the company posted net revenue of $2.3 billion in the fourth quarter of 2007. Nvidia also cut its fourth-quarter revenue forecast by 40 to 50 percent.

      On Jan. 22, AMD will announce its own fourth-quarter financial results. Wall Street analysts are calling for a loss of 54 cents a share with revenue of $1.23 billion.

      AMD’s financial problems date from an earlier time and the current financial crisis has hampered the company’s efforts to increase its profits. Part of the problem stems from AMD’s purchase of graphics maker ATI, which AMD paid $5.4 billion for in 2006, and the company has been forced to write down the value of its investment ever since.

      In addition, AMD struggled to release its 65-nanometer, quad-core Opteron processor in 2007, which allowed Intel to take market share away from its smaller rival. AMD did bounce back in 2008, when it released the 45-nm version of the chip on time and without any technical problems.

      Since taking control of the company, Meyer has announced that AMD would concentrate on its core businesses of processors, graphics and chip sets and the chip maker plans to focus more on consumers and small and midsize businesses.

      The latest round of job cuts should not affect AMD’s efforts to spin off its manufacturing facilities into the new company, Hughes said. That deal is expected to close sometime in the first quarter of this year.

      Besides the job cuts that will start in February, AMD will reduce the base pay for employees who hold the titles of vice president or above by 15 percent. For those employees not eligible for overtime, AMD will reduce their salaries by 10 percent.

      Scott Ferguson

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×