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15% of its global workforce will be let go

AMD has officially announced its financial results for Q3 2012. The company didn't do well with revenue of $1.27 billion, which is a 10% sequential decrease and a 25% decrease year-over-year. AMD reported a net loss of $157 million including a loss of $.21 per share. The operating loss for the quarter amounted to $131 million.

AMD is set to begin a restructuring plan designed to reduce its operating expenses and position the company to be more competitive in the future. AMD says that a "significant portion" of its restructuring plan will be implemented in Q4 of 2012 and will include a workforce reduction along with site consolidations.

The chipmaker expects the restructuring to providing operational savings of approximately $20 million in Q4 and approximately $190 million in 2013. AMD plans to reduce its global workforce by approximately 15% and is largely going to be completed in Q4. Previous reports have estimated that AMD would lay off, as much as 30% of its global workforce.

“Our restructuring efforts are decisive actions that position AMD to compete more effectively and improve our financial results,” said AMD CEO Rory Read.  “Reducing our workforce is a difficult, but necessary, step to take advantage of the eventual market recovery and capitalize on growth opportunities for our products outside of the traditional PC market.”

AMD reports that its computer solutions segment revenue decreased 11% sequentially and 28% year-over-year. AMD believes that the sequential decrease was driven by weak consumer demand for computers and other devices. AMD also saw difficulty with its graphics processor unit with revenue decreasing 14% sequentially due to low unit shipments to OEMs. Operating income for that division was only $18 million compared with $31 million in Q2 of 2012.

“The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD,” said Read.  “It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated. Our restructuring efforts are designed to simplify our product development cycles, reduce our breakeven point and enable us to fund differentiated product roadmaps and strategic breakaway opportunities.”

Source: AMD



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RE: Yeah, right
By nolisi on 10/19/2012 12:52:49 PM , Rating: 2
And thus begins the game of shifting blame. When you can't pin it on Obama, blame it on the democratic congress.

Let's forget the fact that Clinton achieved a balance budget and a surplus and private sector job creation over the last half century has been better under Democrats than Republicans (42 million vs 24 million).

Meanwhile, the current Republican presidential candidate utters both of these statements: "government doesn't create jobs" and "if I'm elected, I'll create 12 million jobs- I know what it takes to create jobs."


RE: Yeah, right
By Ammohunt on 10/19/2012 2:45:55 PM , Rating: 2
quote:
And thus begins the game of shifting blame.


Not shifting the blame lies primarily where it belongs on the shoulders of the democrats.

quote:
Let's forget the fact that Clinton achieved a balance budget and a surplus and private sector job creation over the last half century has been better under Democrats than Republicans (42 million vs 24 million).


Who was in charge of the house and senate when those budgets were balanced? A surplus gained by over taxation and not cuts in government spending = over taxes.

quote:
Meanwhile, the current Republican presidential candidate utters both of these statements: "government doesn't create jobs" and "if I'm elected, I'll create 12 million jobs- I know what it takes to create jobs."


They are exactly right; Private industry produces the GDP government consumes it.


RE: Yeah, right
By Jeffk464 on 10/19/2012 4:01:07 PM , Rating: 2
Meanwhile, the current Republican presidential candidate utters both of these statements: "government doesn't create jobs" and "if I'm elected, I'll create 12 million jobs- I know what it takes to create jobs."

Yeah, just don't ask him how he's going to do it.


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