NEW YORK - Advanced Micro Devices Inc said on Friday it would take a $622 million charge related to its ATI acquisition, and cut 1,100 jobs and reduce salaries.
AMD, which trails Intel Corp in computer chips and was criticized for overpaying for its $5.4 billion 2006 purchase of graphics chip maker ATI, also announced the impairment of another $62 million of intangible assets in a document filed with regulators on Friday.
The $622 million impairment charge comes after an $800 million impairment charge for ATI recorded in the company's June quarter.
As part of its cost cuts it said Chairman Hector Ruiz and Chief Executive Dirk Meyer will temporarily take 20 percent salary cuts, while U.S. and Canadian executives at the level of vice president and higher will take 15 percent cuts.
North American employees who are not eligible for overtime pay will take 10 percent cuts, while overtime-eligible employees will see their pay reduced by 5 percent. It is also implementing voluntary pay reduction measures for employees outside North America.
In addition, AMD is suspending matching company contributions to 401(k) employee retirement plans.
It said the job cuts will reduce its product company workforce, excluding foundry workers, by 9 percent and will come from attrition, divesting its handheld business, and the elimination of another 900 positions.
In an emailed statement, AMD did not say how much money it expects to save from the actions.
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source : www.pcmag.com
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