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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 MrBlastman on 4/8/2008 9:55:10 AM , Rating: 3
It would be icing on the cake if... Nvidia were to buy AMD.

That would make my day. They have the market cap superiority (though market cap meant nothing in the Sirius -> XM merger) and have demonstrated a far better approach to providing revenue and bottom line growth.

They have weaker sales but that has never stopped anyone. The biggest drawback would be Nvidia owns ATI so that would reduce competition (bad) - but, they bought out 3dfx and treated us with a far superior product afterwards (geforce), so they aren't full of hot air and slash and burn aka EA.

I'd prefer that to VIA any day as VIA has provided me with nothing but displeasure, annoyance and frustration over the years with their motherboard products.

Just another idea to add to the pool.


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