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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By kitonne on 11/4/2011 11:12:52 AM , Rating: 1
It's also futile for AMD to devote resources to catch up with Intel in single threaded performance. Intel is way too far ahead and AMD has 1/5th of Intel's R&D resources to spend on CPU-GPU-APU-Chipsets. And single tread is a thing of the past. When you design an architecture that will be your base for the 5-8 years to come, you design it for multitasking.

Not so sure about that... AMD stayed in shouting distance of Intel because on their better micro-architecture and in spite of Intel's better process. They HAVE TO invest in making their single thread execution as fast as possible for a given clock speed range, if they want to stay in the chip designing business.

True, AMD has less resources then Intel, but so far their strategy worked (they are still in business, right?). Their oncoming new APUs have a decent shot of competing in tablets, and they own the budget laptop market segment (where the volume is) with their current APUs. I have also seen comments that a fix for Buldozer is in the works to improve performance.

This is why these layoffs are so poorly timed. They will distract everybody inside the company and may impact the do-or-die projects currently in the pipeline.

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