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Print 27 comment(s) - last by nuarbnellaffej.. on Nov 7 at 9:46 PM

"Good luck with your layoffs, all right? I hope your firings go really well."

In August, AMD announced that it was getting making former Lenovo President and COO Rory Read its new President and CEO. At the end of October, AMD announced that its net income of $97 million was constrained by yield issues with its 32nm manufacturing process.
 
Now the company has announced that it will axe 10 percent of its global workforce as a part of a new restructuring plan that will eventually save $200 million in operational expenses for calendar year 2012. AMD also plans to sever some of its contractual obligations to save money.

 
"Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD's competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth," said Read.
 
The restructuring plan will also allow AMD to focus more on cloud computing, emerging markets, and low-power systems. The focus on lower power consumption is a key as companies like HP are now looking to low-power ARM architecture for upcoming server products, which could spell trouble for traditional x86 processor manufacturers like AMD and Intel.

Source: AMD



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Been there, done that!
By Sylar on 11/3/2011 11:38:25 PM , Rating: 1
"Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD's competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth,"

Didn't they also did layoffs in 2008 & 2009? How did that work out? Man it irritates me how companies think they can word in such a way as if they are doing it to "strengthen" their business. No you are trying to save money to appease your shareholders.




RE: Been there, done that!
By Beenthere on 11/4/2011 12:40:21 AM , Rating: 2
Unfortunately you are correct. Read is trying to convince Wall Street that he has taken charge and that all will turn out fine, which should improve share price and stockholder value including the shares executives receive. It will allow AMD to clean out the non productive folks however and that is usually good. I wouldn't read too much into the press release other than AMD plans to remain profitable now that they don't have the overhead costs of GF.


RE: Been there, done that!
By Reclaimer77 on 11/4/2011 1:42:10 AM , Rating: 1
Would you rather them just close their doors forever? I never understood why people get worked up over layoffs seemingly ignorant as to the root cause of them. Look around, AMD doesn't have many options. Net income of 97 million? That's shockingly bad. Truly disturbing!

I'm actually very concerned. Bulldozer was a huge bust and AMD has barely been competing with Intel these past few years. If you could even call it competing. If AMD has to ditch the X86 CPU side of things, we're all in trouble. If they have to fire some people to keep their margins where they need to be, oh well, that's just how business works.

quote:
Didn't they also did layoffs in 2008 & 2009?


Hey, dumbass. Who the hell DIDN'T do layoffs in 2008-2009? Notice the unemployment numbers? We're facing not just a terrible recession here, but a global crisis.

If you want to argue that the way everyone does business is wrong, well fine, good luck with that. But don't sit here and lay your ignorant trip on AMD and make them the bad guy.


RE: Been there, done that!
By kc77 on 11/4/2011 7:05:55 AM , Rating: 2
The irony is that AMD has actually been turning a profit the past 3 or 4 quarters. Something it has never done. That's before the layoffs.

It matters WHO is leaving or getting axed. Just firing people for short term gains is a really really good way to be hurting later. How in the world are you going to be able to design anything if you don't have people?


RE: Been there, done that!
By Amiga500 on 11/4/2011 7:10:45 AM , Rating: 2
Yip.

If the can keep hold of the brighter folks, get rid of pen-pushers and allow the really good technical guys to take charge of R&D and push directions it can be a really good thing.


RE: Been there, done that!
By Gungel on 11/4/2011 9:41:05 AM , Rating: 2
I read yesterday that most layoffs will come in PR and marketing.


RE: Been there, done that!
By B-Unit on 11/4/2011 10:50:40 AM , Rating: 3
O poo...

We all know AMD doesn't have a marketing department. ;)


RE: Been there, done that!
By bruce24 on 11/4/2011 12:31:49 PM , Rating: 2
quote:
Something it has never done


Yes the have, multiple times, it's just the last time was before they bought ATI, which was a long time ago.


RE: Been there, done that!
By Reclaimer77 on 11/4/2011 12:55:15 PM , Rating: 2
quote:
It matters WHO is leaving or getting axed.


Well for starters pretty much everyone who had a hand in cranking out that turd called Bulldozer. Seriously, their entire market position was riding on that and what a dud it turned out to be. There's just no excuse for spending what precious little R&D funding the company has and releasing something that performs worst than their previous chip.


RE: Been there, done that!
By kc77 on 11/4/2011 9:21:31 PM , Rating: 2
True. However, it seems they aren't the only people. To have people leaving from their GPU division is a blow and a pretty big one.

It looks like the board is focused on short term gains. They are either going to sell assets or are preparing for a merger. You don't clear out all of marketing or PR unless this is the intention.

There is always the possibility that they are completely restructuring but unless they bring on some heavy hitters in both CPU and GPU development, much less software I'm leaning to this being the case.

If they are going to focus on ARM development then they should be hiring some people in order to change their focus. If we don't see this then the writing is on the wall.


RE: Been there, done that!
By Mizerable on 11/4/2011 9:29:08 AM , Rating: 4
Look i don't know why there is such an aversion towards pleasing shareholders, but they're the legal owners of the company and legally the managers have a fiduciary duty to SHAREHOLDERS above all else....


RE: Been there, done that!
By kitonne on 11/4/2011 10:27:59 AM , Rating: 2
Short term - yes, it may rise share price. Long term, it may kill the company, as layoffs de-motivate people, make the survivors look for other jobs, and without ***people committed to the company*** any short term gains will be reversed in the long run.

I know they do not teach this in MBA classes, but people are not something you can hire and fire without long term consequences, and this hidden cost is nowhere to be found in Wall Street analysis.

Guess it all depends which class of shareholders you really want to please - day traders, for which layoffs are great news, or long term investors, who care about growing the company, and for whom laying off people and demotivating your workforce when you are in the middle of something critical (read keeping the low power APUs on track, fixing the buldozer, keeping ATI graphics as market leaders) is very bad news.


RE: Been there, done that!
By Pirks on 11/5/2011 12:14:14 PM , Rating: 2
quote:
without people committed to the company
There are no committed people in the business these days, everybody knows they could be fired on a whim and hence betting your own future on your company is extremly stupid. I've been through quite a few software engineering jobs in my life and my attempts in the beginning to stay loyal to my company and stay in till the end were always "awarded" with abrupt termination of employment during cost cutting "optimizations". Since these early days in late 90s I learned to always be on lookout for a new job and jump the ship the moment I see better deal. I've done that many times and you won't believe how much better is that to leave the company on your own terms instead of being kicked out in an instance without any warning whatsoever. So anyone staying "loyal" is just asking for another cost optimization masked ass rape. Whatever I'm glad I learned my lessons and I'm not with the losers who stay "loyal" to get ass raped later. Commitment may only work with a woman, and even then not for all of them, but commitment in business? Excuse me ya naïve children, I have serious (job market research) work to do, bye!


RE: Been there, done that!
By FITCamaro on 11/7/2011 11:12:45 AM , Rating: 2
The fact that you're employed at all is just as amazing as the stupidity of many of your comments.


RE: Been there, done that!
By nuarbnellaffej on 11/7/2011 9:46:33 PM , Rating: 2
He made some good points, and you didn't address any of them.


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