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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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Nothing new
By crystal clear on 3/21/2008 9:44:51 AM , Rating: 3
quote:
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.


Job cuts are routine phenomen in this industry,even Intel does just that till today & for this year.

Intel with its impresseive performance in 07 & now-

Intel Increases Quarterly Cash Dividend by 10 Percent ›
SANTA CLARA, Calif., March 20, 2008 – Intel Corporation's board of directors has increased its quarterly dividend on the company's common stock approximately 10 percent, to 14 cents per share.


http://www.intel.com/pressroom/index.htm?iid=Corpo...

is actively involved in job cuts across the board all over the world & nobody makes a big noise about it.

So AMD doing it is normal & has nothing to do with a bad quaterly report.

At AMD, bad quaterly reports are normal & the finnancial world has come to accept this & its stock prices reflect just that.

At every analyst event excuses & promises are regularly put forward for their consumptions.

Promise to break even by 2H 08 is the current goal of the management of AMD, it could be end of 2H08 namely December 08 -indeed very vague but nobody believes them.

At long last Barcelona(65nm) is shipping on OEM version from H.P.IBM,Sun & more in future.

It should be interesting to observe how the market responds to these systems & their sales figures for the year end.

Barcelona on 45nm could save AMD from its financial crisis & improve investor confidence.

AMD should be given its time to recover as WITHOUT AMD we the buyers will loose the price/performance advantage that we have today.

Competing with Intel in the future is going to be extremely difficult for AMD technically & financially.

Just as there is a R&D alliance of IBM of which AMD is a member,this should be extended to manufacturing & marketing.
That would imply a common architecture/platforms etc.

In short only such a alliance can effectively compete in the future with Intel.
AMD alone cannot do so & eventually collapse.

In short it should be Intel against the IBM alliance in the market place,




RE: Nothing new
By crystal clear on 3/21/2008 11:01:05 AM , Rating: 2
Just an example-

Intel downsized 2,000 employees in the final quarter of last year, bringing its head count down to roughly 86,000 worldwide.



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