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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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By Grast on 4/8/2008 11:36:29 AM , Rating: 2
Yes it is sad that someone is losing their job. Lay offs are always bad. However if AMD can cut costs and keep the company afloat, that would save 15,000 jobs.

It is also more likely that Hector Ruiz raise was already pre-agreed by the board prior to downturn or part of position package.

My opinion is that raises such as this are not the fault of the person but the ignorance of the board and major stock holders. On the other hand, a 5% raise even if the ammount is in the millions is negligable to company.

If he was an honorable person, Hector should refuse the raise and pass the money on to the employees being layed off in the form of better lay-off packages.

Later..


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