No pay’n no gain
AMD appears to have turned a financial corner, optimistically announcing to employees this week that the firm will scrap a pay cut implemented in February of this year and restore normal pay rates from December.
The chip firm made the decision to temporarily slash salaries back in January, as well as cutting jobs in the face of a crippling economic climate which has seen the firm announce three consecutive quarterly losses. The pay cuts ranged from five percent for hourly workers to 20 per cent for several of the top executives including Meyer himself.
The firm's CEO, Dirk Meyer, announced the good news to employees via e-mail message this week, noting AMD was "optimistic (about) ending the year on a profitable note." The renewed optimism is the result of AMD's significant confidence in its upcoming product ranges and the fact that the world seems to be slowly emerging from the recession.
A recent investor meeting has also been encouraging for the company, with several market researchers announcing AMD shares were now a good buy. This seems to be sound advice as AMD's shares have shot up, more than doubling their value over the course of the year; although they didn't really have too much further to sink.
The chip industry itself is also on the up and up, with the semiconductor industry association recently noting that worldwide chip sales had risen 17 per cent in the second quarter from Q1.
But Meyer did also sound a cautious note, telling employees the company would continue to monitor costs carefully. "Neither the economy nor our business has made a full recovery," Meyer's email read, continuing, "We ask you to continue your tight rein on controllable spending, such as travel, catering and outside services." No more aircraft carrier launches for a little while then, we presume.
Whilst noting that the firm could not comment on the macro environment due to being in its quiet period, AMD spokesmen, Drew Prairie and John Taylor, did confirm to HEXUS that regular salaries would be reinstated "as of December."
"It is good news for our roughly 11,000 employees," Taylor - one of AMD's 2,200 Austin employees - told HEXUS. Meanwhile, Prairie told us there was to be no change in the firm's hiring policies, explaining "In terms of hiring, we have been hiring for critical positions throughout the year."
