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AMD denies jobs cuts and steals a new CMO from Sun Microsystems

Earlier today, reports began spreading around the Internet that AMD was handing out pink slips to roughly 800 jobs. Various sites quoted sources, but declined to give much information other than the 5% figure.

A reduction in workforce wouldn't seem too out of character for AMD which experienced a rough year following its acquisition of ATI Technologies. AMD reported revenue of $1.77B and a $1.722B loss during Q4 2007. The company also experienced an operating loss of $1.678B. For the entire year, AMD brought in revenue of $6.012B, but suffered a net loss of $3.379B.

Despite the grim financials and new reports of job cuts, an AMD spokesman this afternoon denied that the Sunnyvale, California-based company made cuts to its workforce of 16,000 employees.

DailyTech contacted AMD for comment.  Shortly after the company replied, "We did not have a workforce reduction."

Despite the denial from AMD, there is still the real possibility that AMD could move to reduce its workforce if its Q1 2008 financials look grim. "The point is that the quarter has not closed just yet, so AMD is not likely to make any moves," said Technology Business Research analyst John Spooner. "After the quarter closes, the company will decide what to announce, if anything, with regard to its headcount."

Instead, the company today announced that Nigel Dessau will take over as chief marketing officer (CMO). Dessau spent the past two decades with companies like IBM and Sun and is expected to help lift up AMD's image around the world.

"Nigel’s customer knowledge and experience working for IBM and Sun are tremendous assets as AMD charts a new course for the industry with initiatives such as Accelerated Computing," said AMD President and COO Dirk Meyer. "As we deliver platforms and solutions to best meet our customers’ needs, we will lean heavily on Nigel - who has a proven track record of developing and executing clear, compelling global marketing campaigns."

With Intel’s new Penryn processors on the horizon and an influx of six-core Xeon processors coming by year's end, AMD needs to stay on its toes. The company earlier this month began shipping the long-awaited B3 stepping Opteron and Phenom processors which fixed the TLB bug.

AMD is also on track to release 2.6GHz parts by the fall of 2008 and hopes to transition to 45nm production lines in 2009.



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By clovell on 3/20/2008 3:41:19 PM , Rating: 2
I get sick of everyone pointing to the acquisition of ATi as the downfall of AMD. ATi was an expansion of AMD's mass market. Enthusiasts may see it as a waste, but AMD was able to really get something out of it. See: 690G, 780G, Radeon HD3xxx series, and every Wii manufactured using ATi GPUs.

R&D doesn't automatically scale upwards just by virtue of granting it a larger budget, especially in fields as technical as microprocessors.

Ultimately, I really think AMD lost its step on Intel when it decided to go with AM2 - it wasn't a bad move, but the timing could not have been worse. Anybody who has ever ran even an amateur drag race knows the price you pay when you put the clutch in at the wrong time. But, that's just my opinion.


By Ringold on 3/20/2008 6:54:27 PM , Rating: 2
I agree. There are a few decent reasons that come to mind when I think of why AMD is faltering, but purchasing ATi isn't one of them.

Sure, they took on debt to get it done, but debt is no problem if a firm has decent products generating decent income. Debt isn't necessarily a dirty word.. despite 4 letters.


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