Quick Note: AMD To Trim Workforce by 10%, Expects $200M Operational Savings
November 3, 2011 9:35 PM
comment(s) - last by
"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.
This article is over a month old, voting and posting comments is disabled
RE: Been there, done that!
11/4/2011 12:40:21 AM
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.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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