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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 Ammohunt on 10/19/2012 3:18:55 PM , Rating: 2
You probably don't pay taxes lucky you! I happen to be middle class and $2000-$4000 a year in taxes just from Obamacare is going to pretty much break me and my family.

RE: Yeah, right
By Mathos on 10/19/2012 5:15:00 PM , Rating: 2
Thats interesting as well. So how many kids do you have? Because I know plenty of middle class families that pay close to nothing in taxes at the end of the year, due to EITC, meaning they get close to all they paid in back or more. Last I figured up, since I have no children. Making about 20k a year. I pay about 1800 in taxes between SS, and regular payroll tax. And it's been that way since before Obama was elected. I may get $30ish back at tax return time btw. Being middle class implies that you're making at least 40k+ per year, so how exactly does that 2k tax liability hurt you? Unless you're of course living well beyond your means.

Which means you're talking out of your rear. I've never used unemployment. I'd like if I didn't have to take a 20% tax hit off my 401k in the event of a job loss, that way I wouldn't have to worry about using unemployment. But, that would make too much sense. On the other hand, it would encourage people to start saving in 401k's, which would lessen the strain on the SS and Unemployment systems.

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