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The hits keep on coming for AMD

Last week, reports began to swirl around the internet that AMD slashed 5% of its workforce. AMD denied the reports and issued a statement saying, "We did not have a workforce reduction."

It appears that the reports of job cuts were true; however, the size and timing of the layoffs were wrong. According to Information Week, AMD plans to axe off 1,600 employees before the close of September -- this would represent a 10% reduction in AMD's current workforce of 16,000 employees.

The jobs are a necessary move to help lift AMD from the gutter in terms of financial performance. AMD did not disclose which locations or what positions within the company would see the bulk of the workforce reduction.

AMD had a rough 2007 and reported revenues of $1.77B and a $1.722B loss during the closing quarter of the year. 2007 yearly totals saw AMD with $6.012B in revenue and a net loss of $3.379B.

AMD expects that Q1 revenue will come in at roughly $1.5B or 15% lower than Q4 2007 -- the loss came from an unexpected decline in every market that AMD competes.

We will still have to wait a few days longer to hear the full damage report for AMD's Q1 earnings. Despite the already grim forecast, AMD is looking forward to the latter half of the year when it will push its 45nm processors to customers.

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RE: Capital Investments
By sgtdisturbed47 on 4/8/2008 1:52:27 AM , Rating: 2
AMD is going down, has been going down, and will continue to go down until they either go bankrupt or get bought out. AMD already bought ATI which was on it's own way down for a long time, but since AMD can't compete with Intel or nVidia, it makes perfect sense to can 1,600 employees in order to try to stay in business.

It's as simple as this: you either beat the bigger and better by coming out with something revolutionary, or stay behind and cater to a different niche. AMD already pulled from the enthusiast market by shutout, and now they need to just spend their money more wisely and back off of the high-end gaming market. If they continue to spend money on high-end gaming hardware, they will be bought out or bankrupt in 2 years, guaranteed.

RE: Capital Investments
By teckytech9 on 4/8/2008 1:34:26 PM , Rating: 1
Quite the contrary. There are foreign and domestic interests that won't see the collapse of AMD anytime soon. AMD has a history of launching comebacks, as anyone who has invested in the company knows that. Just look at the stock chart histories.

As for them backing out of the high-end gaming market, is a complete farce, since they invented it in the first place - remember 3DNow? Just wait till the next generation of CPU/GPU's from AMD are released. It follows from their acquisition of ATI, that AMD now has the "know-how" to release these new batches of processors to the market ahead of their competitor. In hindsight, I just think that AMD should have consulted with NVDA first, but now that ATI has been swallowed, a future AMD-IBM-NVDA alliance would be just awesome, if it ever happens.

Now if they can just get that secret gate ingredient mystery solved to speed everything up.

RE: Capital Investments
By crystal clear on 4/8/2008 2:14:49 PM , Rating: 2
Just to update you on something-

Toshiba samples Cell-based HD GPU

Toshiba has begun sampling the graphics chip it hopes will beat Nvidia and AMD at the GPU game: the Cell-derived SpursEngine SE1000.

The IBM alliance is hard at work - no place for Nvidia.

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