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 9:41:54 PM
Already ahead of you in making the jump. :)
Had a Phenom 2 x6 1090T, clocked it to 4.2ghz. - With a 3ghz NB clock which boosted IPC by around 5-10% in the tasks I wanted.
Bulldozer arrived and it was actually slower than the chip I already had even when overclocked.
So what alternatives did I have? It was great having a platform which was incredibly backwards/forwards compatible, but I still needed more CPU grunt.
The only choice I had really was to make the move to the Core i7 3930K, clocked it up to 4.8ghz and I am actually getting
double the performance in heavily threaded tasks (Think: Encoding) over my old 1090T, mind you the 3930K is about 50% more expensive than what I paid for my launch 1090T which was $400 at the time here, motherboard and ram is more expensive too. - But that happens when you have little competition in the high end.
Sad part is though, the Phenom 2's were already slower than the later revision Core 2 chips in terms of IPC, Bulldozer is even worst than that, but it does seem to switch into another gear with integers... Except everything I run is more floating point heavy which really hits those chips hard.
On the flip side, I love their APU's, Got one in a HTPC and in a notebook, would love one in a convertible tablet instead of dealing with Intel Decelerators...
But mostly, I want AMD to compete in the high end again, my wallet will thank them greatly for it.
10/14/2012 10:22:02 PM
Lack of decent IPC really is dragging the competition down, and AMD's income. Looking at ivy, I doubt intel would've gone with the awkward pasted IHS if there was a decent competitor over their shoulder. People who've reduced the spacing have had pretty significant temperature drops, but its a big risk considering the price of those chips.
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