The employees at chip designer and seller AMD got some good news in their email this week: they are getting a raise. Sort of. According to the Austin American-Statesman, the local paper in AMD's Texas hometown, new chief executive officer Dirk Meyer is getting ready to rescind the pay cuts that AMD instituted in January, when …
"It's a wonder why AMD didn't keep the pay cuts in place and let it drop to the bottom line until the company had a few quarters of profits under its belt."
Who got the biggest pay cuts? So who was the first to reverse them? And not to look like a*ses they needed to reinstate pays of everybody... If they had a way of giving themselves a raise bypassing all other employees, they would have done that.
"Who got the biggest pay cuts? So who was the first to reverse them?"
While I see what you're getting at, it's a little disingenuous. Who ELSE could have reversed the pay cuts, OTHER THAN the top brass? Answer: no one. As a result, this statement doesn't really have teeth.
Makes sense to me
First off, they probably realize that they need to retain their top talent to stay in business. So they can't afford to be too shabby with the pay for too long, or that talent will bleed away.
Second, this year-long temporary pay cut has already given them two major benefits - one, it gave them a one-time injection of cash in the form of the pay cuts themselves. Second, this will effectively mean that the employees at AMD will go 2 years without a raise - the year they had a paycut, and the year their paycut was rescinded. This lowers the base pay of every employee at AMD; even in the future, when raises are calculated, they will likely be based on current pay - which will lack those two prior raises.
So, AMD still saved a lot of money with this maneuver, yet by sticking to their word and reversing the paycuts, they come out looking like good guys. All in all, rather slick.
hiring has gone up in semiconductors
alot of companies, mine included have rolled back pay-cuts. some have even reimbursed employees for back pay. upper management is just scared shitless that if the real engineers leave, they can't do much more than fart hot air through their mouths.
i've got a couple of friends in AMD, so good for them.
And, more so - the fact that they gave themselves 20% cuts and the lower workers 5-10% cuts speaks volume for managers who understand they earn more money and therefore a percentage cut affects them less in general, as a higher percentage of their income is disposable. Good for them.
And just who....
... gave the top brass the bigger temp pay cut in the first place?
... they're the first company to cotton on that once the market picks up again, people that have been treated badly will jump ship at the first opportunity?
Nice too see..
a company thinking about its employees rather then its shareholders for once.
Well done AMD.
Fell off my Chair
the very thought of a corporation doing something legit.
jump off the ship
Upper management is just worried x86 guys will jump off the ship to the other x86 company, especially at critical time. With only 2 x86 companies (with a significant market share), one can disrupt the other x86 project by recruiting the senior employees.
- Exclusive HP slaps dress code on R&D geeks: Bin that T-shirt, put on this tie
- Analysis Ballmer's billion-dollar blunders: When he gambled Microsoft's money and lost
- BREAKING NEWS: Apple makes money
- Exclusive + analysis How to waste two years and lose $415m: Cisco's now-dead Whiptail deal
- Q. How much did Google just spend applying political pressure in the US? A. $4.6 million