Report: AMD to Cut Up to 30 Percent of Engineering Staff in Coming Weeks
October 14, 2012 6:54 PM
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The company is expected to announce the number of lay offs in the next week -- around the time it will be reporting its quarterly financial results
Advanced Micro Devices
(AMD) will be cutting as much as 30 percent of its staff before the end of the year.
AMD, which makes processors for PCs and servers, is getting ready to lay off anywhere from 20 to 30 percent of its employees in the next few weeks. The company is expected to announce the number of lay offs in the next week -- around the time it will be reporting its quarterly financial results.
This marks AMD's second big staff cut in a year's time. About a year ago, it cut 10 percent of its employees. At the end of Q2 2012, the company said it had 11,737 employees.
Why is AMD making such drastic reductions in staff? Mainly because it is struggling to compete with other
like Intel. Intel has not only grabbed the PC and server markets, but has also dipped into the mobile market as well, offering
tablet and smartphone chips
. AMD, on the other hand, hasn't made a push for mobile yet. This is clearly problematic, considering the PC market has been in decline in favor of mobile devices, and chip makers like Intel and AMD have to adapt to stay alive.
In addition to competition,
reported that AMD's board is a huge reason as to why the company was forced to make staff cuts. The report said that AMD's board is "incompetent" and that the company "staffed senior management with toadies who would do their bidding rather than do the right thing."
noted that AMD is mainly cutting engineers, and that AMD likely will not survive with this cut.
AMD has already announced ahead of its quarterly earnings report that that revenue would decrease 10 percent instead of the previously forecasted four percent decrease to two percent increase.
However, AMD is hoping for a brighter future with its first mobile chip release for Windows 8 tablets this year.
AMD is expected to announce quarterly earnings this Thursday.
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10/14/2012 8:16:26 PM
I actually can't believe it. What board could be so stupid as to fire their own engineers? Specially in the case of a company whose product actually depend on more and better engineers! Without engineers and R&D you don't have any product. I have been an AMD supporter since the first Athlon series and have seen the sad decline in late years of this company. Till now I could always find an argument for AMD: either pure performance initially, performance/buck later on, till the better integrated GPU, don't really need that much pure CPU performance lately (specially in laptops). The A8 series is an excellent beast. I even had some hopes for AMD in the long view as their GPU/CPU integration strategy seemed to be paying off. But without R&D there can't be a future for AMD. So let's hope it's just a reorganization. May be firing the least productive personnel and searching for new talent and new blood. We will see, but it's a sad road. Let's hope we won't have another Rimderburg disaster in the near future.
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