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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 1:16:26 PM , Rating: 2
quote:
The markets will respond positively because having a business friendly president breeds confidence in companies that the capital they have been holding on to will be better positioned to be used to make them more money rather then taxed away by government. People have short memories Reagan's policies not Clinton's lead to the booming 90ies where the fed had to increase interest rates to slow the economy down to avoid having the value of the dollar sky rocket and affect trade.


Reagan was in office two terms, and then was succeeded by Bush Sr, who lost because of a recession.

But no, Republicans keep claiming "Reagan was responsible for the 90's" but not the recession that happened between him and Clinton.

The link everyone misses with the economy: Americans spend their disposable income (which is greater than most other parts of the world because incomes are higher here). But when jobs are off shored, Americans have less disposable income. Yet businesses don't reduce prices (how many cases have we had of price fixing over the last decade and a half). Over time this erodes the middle class, and then we have the bottom fall (middle class) out from the economy. Businesses still profit however, because they've reduced production costs.

Until cost of production rises overseas or politicians get tough on businesses who offshore by introducing a stronger tax/cost on bringing in products from overseas to discourage offshoring, the middle class will continue to shrink. I agree with the idea of reducing corporate tax rates, but I don't want to make a few CEOs in America with a slave-wage workforce overseas. I want American CEOs to develop American businesses, not Chinese business.

Make the coporate tax rate not only dependent on income, but also make it contingent on how much overseas employment you retain. The more you import from and employ in China and India, the higher the tax rate you have. This is how you level the playing field between small business and enterprises.


RE: Yeah, right
By Jeffk464 on 10/19/2012 4:09:58 PM , Rating: 2
Corporation are dependent on the american middle class anymore. They build products all over the world and sell products all over the world. Eroding the american middle class is probably A ok in their book as the middle class in China and India are going to be more important markets anyways. You have to remember that US corps consider themselves to be international the US is just another market to them.


“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls














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