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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 chip makers 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, SemiAccurate 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." SemiAccurate 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.

Source: SemiAccurate



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RE: Close but not quite right
By tjacoby on 10/14/2012 10:46:25 PM , Rating: 2
Could not agree more. Sure, AMD is focusing on laptop and mobile space more than a "competitive" desktop chip... Is that not where the market is headed?? I am a hardware enthusiast (as much as I can afford to be, anyway), and even I will not deny that the desktop is dying... Is it going away? No, but the demand for it is permanently decreasing due to the inconvenience of being tethered to a single spot.

People like to blame the board for running the company into the ground. As you stated, this is a company looking to SURVIVE market conditions while at the same time putting out a less-than-competitive "flagship" product. I have always been an AMD fan (have owned Athlons, Opterons, Phenoms, Llanos, and typing this up on a WONDERFUL E350), and I fully support them going into "survival" mode for the time being. They have opened up their API (wrong term, but whatever the interconnect is for their GPUs to CPUs), putting them in position to provide hybrid chips in the future to anyone wanting to pair up their GPU with an ARM processor, and if what I have read is correct they have locked down the GPU designs for all three next-gen consoles, which should certainly help keep them afloat.

AMD is hurting right now (like almost all non-commodity based companies), but they are not out of the fight. Tough times call for tough measures, but if you want AMD to stick around this is what is required. I like their mobile offerings, especially compared to Intel (at least in the GPU side), so we will see how things shake out.


RE: Close but not quite right
By someguy123 on 10/15/2012 1:47:10 AM , Rating: 2
If you're really going to argue market trends the trend right now is low powered mobile, something that AMD has no solution for. Don't get me wrong, their apus are basically the best chips available for laptops/low profile htpc, but that's not where the growth is.


RE: Close but not quite right
By ET on 10/15/2012 4:24:36 AM , Rating: 2
x86 for low powered mobile is a difficult proposition in any case. Windows 8 has to become a success for that to really happen.

Still, there's quite a bit of a market for commodity laptops. Also AMD's APU's are down to 4.5W, which is in tablet territory, so they can get into the Windows tablet space.

But it's a precarious position. I think that the window of opportunity is closing, as Intel readies better solutions for the low power space.


RE: Close but not quite right
By tjacoby on 10/15/2012 12:17:07 PM , Rating: 2
I agree, they need a more competitive offering in the tablet arena, but I think they are on their way (and with a possibly superior GPU offering to boot).


RE: Close but not quite right
By ET on 10/15/2012 4:31:52 AM , Rating: 2
I'm really worried that it's the end. The prospects of success for AMD don't seem too good on the CPU front. Intel has a process advantage, a performance advantage, and is making strides in graphics. I think it won't be long before it will offer products competitive with Brazos and its descendants, and even with Llano.

AMD still performs decently in GPU, but it's a hard battle with NVIDIA, and the increasingly powerful integrated graphics are eating the low end graphics card market.

I really hope AMD survives, because I don't want an Intel/NVIDIA market.


RE: Close but not quite right
By jeffkro on 10/15/2012 12:26:35 PM , Rating: 2
"People like to blame the board for running the company into the ground."

Its also the fault of intel for using illegal and unfair business practices against AMD. This massively reduced AMD's income and so obviously cut into their RnD budget. Hopefully intel won't be able to pull off the same anti-competitive business practices against ARM companies.


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