AMD Set to Restructure After Poor Q3 Earnings, Layoff 15% of Workforce
October 19, 2012 9:05 AM
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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.”
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RE: Yeah, right
10/19/2012 12:55:54 PM
Obama economy? Plz.
Please pretend that what you are saying is all true (the reality distortion field in full effect).
Do you really think Romney's economic policies are going to get us back to health? What exactly is he proposing other than what Bush ALREADY done?
- Wow ... genius. I mean who ever thought of this idea?
Increase defense spending
- I thought we are against big gov't? I guess military doesn't count.
Increase deficit by $8Trillion dollars and using some magical potion, all that will be offset by Mitts economic policies of closing the tax loopholes and spur economic growth because "small businessses and big corporation" will like being in America once again ....
What are those "6 independant review boards" that approve Mitts plan? Care to tell us about it? Just saying ... It'll be a hoot!
I don't know about you, but $8T worth of loopholes .... that's alot of loopholes.
If you can't see this as a snake oil's salesman tactic, then I guess no argument will persuade you to change your mind.
But don't worry, Obama will win, and if America gets back on its feet again, blame it on Obama. Because it's all his fault for getting us out of his mess.
Then you can go and elect another Republican into office. We still love you buddy.
RE: Yeah, right
10/19/2012 3:06:15 PM
If Obama wins America will go too far down the road towards the poor house to turn back. Mr halve the deficit (we all know how that turned out) or my favorite $800B for 7 million new jobs...net gain in jobs? 0. Real winner you picked out there! Now that your warm fuzzy from voting for the first black president has cooled can we get some adults back in the white house?
RE: Yeah, right
10/19/2012 4:19:01 PM
The deficit was primarily caused by the bush tax cuts and the great recession dropping tax revenue. Starting two extremely expensive wars also didn't help.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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