AMD Axing More Jobs, Cutting Pay

Computer hardware manufacturer AMD will eliminate 1,100 jobs and temporarily reduce pay for all remaining employees, reports the Associated Press.

It's the third round of layoffs for AMD in under a year, as it cut 600 jobs in December and an additional 1,600 positions earlier in 2008. The company is also in the process of spinning off its manufacturing operations, which will relocate 3,000 workers.

The latest cuts affect 9% of AMD's 12,000 employees that aren't being shuffled in the manufacturing shift. Of the 1,110 cut positions, 900 employees will lose their jobs, with the other 300 positions stemming from attrition and the sale of another business unit.

Those that remain at AMD will see their pay temporarily reduced, the extent of the reduction depending on their position. The CEO and executive chairman will see salaries cut by 20%, vice presidents and other top management will lose 15%, regular salaried staffers will lose 10%, and those paid hourly will make 5% less.

Along with the pay cuts, AMD has also indefinitely suspended 401(k) matching. The company did not specify when it will return to normal pay rates or 401(k) matching.

In a separate filing, AMD noted its belief that subsidiary ATI Technologies is now worth less than half of the $5.8 billion AMD originally paid for the graphics card manufacturer.