Print 49 comment(s) - last by Regs.. on May 5 at 7:22 AM

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.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By rudolphna on 4/8/2008 8:41:10 AM , Rating: 2
i wouldnt say that they are all bad. I like AMD and would love to see them come back to competetiveness. The one area they can really compete in is pricewise. We just bought a new laptop, our 6 year old Gateway powered by a mobile Pentium-4M just died, and we needed a new one cheap for moving. Solution? Acer Extensa 5420. AMD TurionX2 1.9ghz. Works perfectly, and very fast. For general usage, it is plenty fast. gaming for most people will be good on AMD processors, unless you are one of those peopl ethat sits and watches the Framerate counter the whole time.

RE: amd
By darkpaw on 4/8/2008 9:45:04 AM , Rating: 2
The problem with competing price wise is they are already getting killed on income. Sure they have good competing products at the low end, but they are not making anything on them either. They'd have to make 50% more money then they did last year or cut costs by 50% just to break even!

"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
Related Articles

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki