Report: AMD to Cut Up to 30 Percent of Engineering Staff in Coming Weeks
October 14, 2012 6:54 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
Longtime AMD supporter
10/15/2012 11:09:42 AM
I have been a supporter (but not a fanboy) since the K6-2 days. I can trace all their problems back to one source: bad management making stupid decisions.
It's the same problem most companies face today. They hire a bunch of overpaid nincompoops who know NOTHING about the market to make decisions that are 180 degrees wrong. They blame problems on everything but the source. Let's blame it on employees, or the economy, or whatever when they only need to look in the mirror to see AMD's biggest obstacle.
Laying off engineers is just another example of the skewered thought processes of these incompetent pencil-pushers. The first layoffs should be in upper and middle management. If all layoffs started in upper and middle management instead of the non-management employees the company really depends on, you can bet they would find creative ways to get the job done.
Even in the industry I'm in, you can always tell when a company is on it's downhill slide when they start coming up with inane ways to increase profits, such as cutting needed employees (solely to increase stock price), wages, salesmen's commission, advertising, etc., when the real problem is the management morons making these decisions. When a tech company starts cutting engineers and leaving stupid-a** people in management positions and on boards, you can bet it's only downhill from here.
I sincerely hope I'm wrong and AMD somehow finds it's way back to it's glory days, but it ain't looking good.
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
AMD Pairs With ARM to up Security, Heterogeneous Computing
June 13, 2012, 3:43 PM
AMD's Brazos 2.0, Trinity Storm Onto the Market
April 20, 2012, 7:00 PM
Intel Says Haswell Coming in 2013, Will Rival Today's Discrete Graphics
June 24, 2011, 12:05 PM
iLate: CEO Tim Cook Says Apple Watch Will Ship in April
January 28, 2015, 3:03 PM
Amazon's Fire Sale on Fire Phone Steps up in UK w/ 1-Day Sale @ $150 Unlocked
January 28, 2015, 11:53 AM
Apple Sees Record Profit of $18 Billion, Sells 74.5 Million iPhones in Q1 FY2015
January 27, 2015, 6:01 PM
Apple Might Miss High-End of Analyst Estimates, Microsoft Earnings Hint
January 27, 2015, 3:14 PM
Microsoft Smartphone Sales Up 28 Percent as Lumia Budget Models Gain Ground
January 27, 2015, 8:30 AM
Quick Note: Special 20th Anniversary PlayStation 4 Raises $128,000 for Charity
January 26, 2015, 4:14 PM
Most Popular Articles
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
BlackBerry CEO Claims Devs are Violating Net Neutrality by Not Supporting BB10
January 22, 2015, 4:37 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
Will Google Become America's Fifth Major Carrier?
January 22, 2015, 12:42 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information