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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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

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
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
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.

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