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 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
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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