AMD will cut a number of Australian staff as part of the company's global workforce slash.

Media reports from the US said the company would reduce its numbers by nine per cent across the globe, translating into about 900 staff. The beleaguered chip manufacturer will also slash the salaries of upper management.

In a statement, AMD’s local country manager, Caleb Leung, said the reductions would also apply to the Australian business and will occur over the first quarter of the calendar year, but declined to specify how many staff would lose their jobs.

“These actions, while difficult, will allow AMD to better navigate the economic conditions while protecting our core capability to execute our technology roadmaps and position AMD for long-term success,” the statement said.

Further details will be unveiled during AMD’s Q4 2008 earnings conference scheduled for January 22.

AMD struggled through 2008 and laid off 500 staff in November. However, its headcount has been slashed by more than 2000 in the past 12 months. The company also spun off its manufacturing operations last October. The vendor's last profitable quarter was Q3, 2006.