Advanced Micro Devices Inc. announced Friday it will cut 1,100 jobs and make temporary pay cuts to top executives and employees as the company faces tough economic conditions.

AMD said its executive chairman Hector Ruiz and its chief executive officer Dirk Meyer will temporarily take a 20 percent reduction on their salaries. U.S. and Canadian executives on vice presidential levels and higher will take a 15 percent cut the Wall Street Journal reported.

A 10 percent reduction will be applied to employees who are not eligible for overtime pay, and 5 percent for those who are eligible for overtime.

These actions, while difficult, will allow AMD to better navigate the turbulent economic conditions while protecting our core capability to execute our technology roadmaps and position AMD for long-term success, a company spokesman said in an emailed statement to the WSJ .

AMD also announced it will suspend matching contributions to its employee retirement savings for the U.S. and Canada, WSJ reported