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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 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).

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