AMD to Cut 1,100 Workers

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
AMD has announced that it will cut 1,100 workers and reduce pay for its remaining employees, including management. Hourly workers will see a five percent decrease in pay, salaried workers ten percent, top management fifteen percent while CEO Dirk Meyer will get a twenty percent cut.

The Sunnyvale, Calif.-based company says 900 workers will have their positions cut. The rest of the reductions are coming from attrition and the previously announced sale of a business unit. The company has 15,000 workers currently, but none of the 3,000 workers who will be part of the planned spinoff of AMD's manufacturing operations will be cut
Click to expand...
 
20% doesn't mean much when you make such a killer salary. The ceo might now only drive his Lamborghini's on weekends whereas the workers who follow orders may have to make deep cuts in general cost of living. Cut top management 20% and ceo 25% and save those workers.

Just my two cents.
 
Don't forget the Golden Rule, those with the gold make the rules. Bad economies never really hurt people with money. Not to say that people with money may lose it, but those who have it and can keep it are fine. That's life.

Let's just pray for a recovery in jobs SOON! This economy can't just keep loosing jobs. In fact one thing that we may actually learn from this is that after you cut so many jobs, just cutting more simply magnifies the problem. The pay cuts suck for sure, but that's better than being unemployed right now. I do hope that people will be able to get that monkey back.
 
should have reduced pay more for management. hate to see people get laid off. but thats the way it goes i guess. :(
 
Ockie said:
20% doesn't mean much when you make such a killer salary. The ceo might now only drive his Lamborghini's on weekends whereas the workers who follow orders may have to make deep cuts in general cost of living. Cut top management 20% and ceo 25% and save those workers.

Just my two cents.
Click to expand...

heh yeah but corporations almost NEVER cut management when times are tough. Usually the troops in the trenches are the ones to take the hit despite them being the ones that actually DO all the work. Sigh, more bad news for AMD..I really hope they get their shit together because a future with Intel as our only CPU supplier is a grim future indeed.
 
this is just amd responding to intels negative outlook for q1 they need to be seen doing something positive besides their gpu business and the on the right track cpu business
 
Ockie said:
20% doesn't mean much when you make such a killer salary. The ceo might now only drive his Lamborghini's on weekends whereas the workers who follow orders may have to make deep cuts in general cost of living. Cut top management 20% and ceo 25% and save those workers.

Just my two cents.
Click to expand...
agreed. but that cut might not be enough. i hate how officers say "I make $1 a year" bs when they pull millions and millions from other "incentives"
March 14, 2008

NEW YORK—Advanced Micro Devices Chief Executive and Chairman Hector Ruiz collected compensation valued at $7.4 million in 2007, down 54.3 percent from the year before, as the chip maker experienced its second difficult year in a row.
Click to expand...
...tough time to only be making $7.4 million! :( and he took another pay cut this year with the 20%. What's one to do?

But, positively, i'm glad they are doing pay decreases instead of terminations. That's a huge plus. I'd much rather take a cut in pay then lose my job completely. It's not a good time to be unemployed.
 
Super-b said:
agreed. but that cut might not be enough. i hate how officers say "I make $1 a year" bs when they pull millions and millions from other "incentives"
...tough time to only be making $7.4 million! :( and he took another pay cut this year with the 20%. What's one to do?

But, positively, i'm glad they are doing pay decreases instead of terminations. That's a huge plus. I'd much rather take a cut in pay then lose my job completely. It's not a good time to be unemployed.
Click to expand...

Ruiz isn't the CEO any more, Dirk Meyer is. Couldn't find anything for 2008 yet since he became CEO but in 2007 his base pay was $659,000 but he had over 2 million more in stock options.

http://investing.businessweek.com/b...people/person.asp?personId=2200375&symbol=AMD

He only cut his base pay 20%, not his options. So really even if using the above numbers. His toatal salary in 2007 was $3,299,774, 20% of the base $695,000 is only $139,000. So if you figure his total compensation for 2007 with 20% off his base pay he is really only taking a 4% paycut.

Now that he is CEO I would imagine his stock options and such are a lot more than in 2007 so the actual % of total pay cut he is taking is probably lower than 4%.
 
Spacy9 said:
Ruiz isn't the CEO any more, Dirk Meyer is. Couldn't find anything for 2008 yet since he became CEO but in 2007 his base pay was $659,000 but he had over 2 million more in stock options.

http://investing.businessweek.com/b...people/person.asp?personId=2200375&symbol=AMD

He only cut his base pay 20%, not his options. So really even if using the above numbers. His toatal salary in 2007 was $3,299,774, 20% of the base $695,000 is only $139,000. So if you figure his total compensation for 2007 with 20% off his base pay he is really only taking a 4% paycut.

Now that he is CEO I would imagine his stock options and such are a lot more than in 2007 so the actual % of total pay cut he is taking is probably lower than 4%.
Click to expand...
Exactly what I was going to say. This is pathetic. It really bugs me when people pretend to take a big pay cut like 20%. Salary is not income or compensation.
 
ElGuapo242 said:
heh yeah but corporations almost NEVER cut management when times are tough. Usually the troops in the trenches are the ones to take the hit despite them being the ones that actually DO all the work. Sigh, more bad news for AMD..I really hope they get their shit together because a future with Intel as our only CPU supplier is a grim future indeed.
Click to expand...


Do all the work is not kind of reaching. Like it or not th managers are there for a reason and the company would not be a company with out them CEO's included. Cuting the low end does make sense for many reasons. If your product is not selling for what ever reason yo don't need the people that are responsible for making the product. It's easy to replace a line person but not the case with management.

I agree they do need to get the problem fixed. I have been a huge fan of AMD for years but if they fail to be competitive and soon they will go away the same way that CC and CompUSA did.
 
WTF?! Are you sure the percentages aren't reversed? Did I see that as you went up the chain the percentages actually increased?
 
SGD said:
Do all the work is not kind of reaching. Like it or not th managers are there for a reason and the company would not be a company with out them CEO's included. Cuting the low end does make sense for many reasons. If your product is not selling for what ever reason yo don't need the people that are responsible for making the product. It's easy to replace a line person but not the case with management.

I agree they do need to get the problem fixed. I have been a huge fan of AMD for years but if they fail to be competitive and soon they will go away the same way that CC and CompUSA did.
Click to expand...

It sucks that those in charge cant do their job worth a shit so they fire every one underneath them and get to keep their cushy jobs.
 
Spacy9 said:
Ruiz isn't the CEO any more, Dirk Meyer is. Couldn't find anything for 2008 yet since he became CEO but in 2007 his base pay was $659,000 but he had over 2 million more in stock options.

http://investing.businessweek.com/b...people/person.asp?personId=2200375&symbol=AMD

He only cut his base pay 20%, not his options. So really even if using the above numbers. His toatal salary in 2007 was $3,299,774, 20% of the base $695,000 is only $139,000. So if you figure his total compensation for 2007 with 20% off his base pay he is really only taking a 4% paycut.

Now that he is CEO I would imagine his stock options and such are a lot more than in 2007 so the actual % of total pay cut he is taking is probably lower than 4%.
Click to expand...

So basically the guy can take a couple days of unpaid vacation and that still puts him on track.

Pathetic.
 
Ockie said:
So basically the guy can take a couple days of unpaid vacation and that still puts him on track.

Pathetic.
Click to expand...

You could also look at the people that designed the newest CPUs as doing a crappy job since they are to blame for making a crap prduct in the first place. The CEO's did not make or design the products that are causing the problem. Maybe if these lower paid people could design something that actually competes against Intel would be a good idea.
 
SGD said:
You could also look at the people that designed the newest CPUs as doing a crappy job since they are to blame for making a crap prduct in the first place. The CEO's did not make or design the products that are causing the problem. Maybe if these lower paid people could design something that actually competes against Intel would be a good idea.
Click to expand...
good point. I think most of us are generalizing that even if a CEO takes a 20% cut in pay, they aren't hurting their pockets too much.

Nice Spacy9. Just goes to show the whole, i'm working for a dollar a year is BS. I wouldn't be suprised to see other compensations go up to make up for the pay cut. Same goes for the US automakers officers. But we could be opening a whole 'nother can of worms here.

Back to the subject, kudos to AMD for cutting pay, and not more jobs.
 
SGD said:
You could also look at the people that designed the newest CPUs as doing a crappy job since they are to blame for making a crap prduct in the first place. The CEO's did not make or design the products that are causing the problem. Maybe if these lower paid people could design something that actually competes against Intel would be a good idea.
Click to expand...

Having worked for a large corporation before, I can say first hand that it's not the little guys. Yes, they have to create new products, but it's up to management to tell them to do a better job, fire them, or push them. It's also up to management to align the company with various of goals and to increase/maintain the health of the company. None of these things were done by exective.

It's kinda like kids, on their own they are ok, but if you put them in the right direction and reward them for their work, you get good results. If you left them screw around, you get bad results.
 
Ockie said:
Having worked for a large corporation before, I can say first hand that it's not the little guys. Yes, they have to create new products, but it's up to management to tell them to do a better job, fire them, or push them. It's also up to management to align the company with various of goals and to increase/maintain the health of the company. None of these things were done by exective.

It's kinda like kids, on their own they are ok, but if you put them in the right direction and reward them for their work, you get good results. If you left them screw around, you get bad results.
Click to expand...

+1 This is the reason most buisnesses that find themselves in a situation like this have to let people go. Piss poor management/leadership whatever you want to call it, is almost always the prime reason for this shit. BUT they still keep these asshats that make the shitty decision's in place. Mabye I am over generalizing here but damn!
 
Ockie said:
Having worked for a large corporation before, I can say first hand that it's not the little guys. Yes, they have to create new products, but it's up to management to tell them to do a better job, fire them, or push them. It's also up to management to align the company with various of goals and to increase/maintain the health of the company. None of these things were done by exective.

It's kinda like kids, on their own they are ok, but if you put them in the right direction and reward them for their work, you get good results. If you left them screw around, you get bad results.
Click to expand...

I may be wrong but the executive that created this mess is no longer with the company so why does the current person pay for the previous persons errors. The last guy in there was a total joke. He ran the company into the ground and got rich or should I say richer in the process. I don't fault the current people in charge for the mess that they are in. I stand by my statement that the cuts or reductions are the right way to do it. It is not good that anyone gets effected but the reality is business has been run this way for a very long time and it will not change anytime soon if at all. Sorry that is just the facts.

If people don't buy your product there is no reason to keep the people that make the product plain and simple. There will still be upper management decisions that need to be made so they have to be paid and paid well. If they don't no one will want the position or you'll get someone in there not fit for the job.
 
Damn...If I had to take a 5% paycut, that would equal the increase I got in the last TWO years...
 
SGD said:
so why does the current person pay for the previous persons errors
Click to expand...

There are so many things wrong with that statement. You have a company. Let's say the top person spends all of the company's money, and there's nothing left, and nothing to show for it. Then, the top person steps down. Who do you think pays for this? Him? Hell no, the company has to work harder to get that money back (unless we're living in your fantasy land, of course).
 
As I said a few years ago ... thumbs up to all the ATI executives responsible for squeezing AMD for as much as they got for the buyout.

Hope you're enjoying those Margaritas in some tropical paradise!
 
hey.. ya have to give credit atleast the ceo took a pay cut as well.. how many times have you seen where a company cuts everyones pay but all the executives got raises along with the ceo..
 
jvz555 said:
I hate this economy :(
Click to expand...

Hate wall street instead, they keep spreading the panic. Yesterday there was an article that said, and I can't make this up, "stocks slump on fears of a recession"

WTF is wrong with them.
 
So they have already cut about a total of 3300 jobs within a year? And also cutting salaries. There seems to be much expandable employees.. Hope this year will be a better one. :(
 
hopefully no one from the R&D gets laid off, they need all the help they can get to catch up with intel.
 
You must log in or register to reply here.
Back
Top