Chipmaker Advanced Micro Deviceswho plans to spin off its manufacturing operations and locate a plant in Maltaannounced today that it will lay off 1,100 of its workers and institute pay cuts for others.
CEO and Executive Chairman Dirk Meyer will reportedly take a 20 percent pay cut. Executives in North America will take 15 percent pay cuts, salaried workers with take 10 percent reductions and hourly workers will face a 5 percent drop.
The cost saving measures were attributed to a slowdown in demand for computers and related hardware as the economy continues to cool.
The layoff of nine percent of AMD's global workforce will not affect the Foundry Company manufacturing spinoff or plans for the $4.6 billion facility in Malta.
"It won't really have any direct effect," said AMD spokesman Travis Bullard. "The cost cutting initiative that AMD is announcing is directed toward AMD the product company."
The official formation of Foundry is drawing nearer, said Bullard. The Committee on Foreign Investments in the United States recently approved involvement of Abu Dhabi investors in the venture, and a similar European Union organization is reportedly approaching such a decision, as well.
AMD stockholders must also approve the move. A meeting has been scheduled for Feb. 10.
This is not the first time AMD has faced reductions. Last April, it cut 1,680 jobs following poor earnings in the first quarter.