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AMD announces the job cuts after a brutal Q1 earnings announcement

After confirming it had to reduce expenses, AMD recently announced that it will cut 430 jobs worldwide, which is 2.6% of its workforce.  Around 40 jobs will be cut in AMD's Sunnyvale and Santa Clara, CA offices; 80 jobs in Austin, TX; around 12 in Boston, MA; and 50 in Markham, Ontario.  No workers in Dresden, Germany, location of AMD chip-making facilities, will be laid off. 

The remainder of the job cuts will be spread throughout AMD offices and manufacturing locations around the world.  Most of the jobs will be from marketing, sales and administration, but several engineering jobs will also be cut.

The announcement comes after AMD Chief Executive Hector Ruiz described AMD's recent performance as "unacceptable."  Ruiz said that as many as 800 jobs, the equivalent of 5% of AMD's workforce, would face possible elimination.

"There is no way to sugarcoat our performance in the first quarter," after the company posted a $611 million loss, said Ruiz.

Industry analysts are unsure if AMD will have to cut more jobs in the near future.  "I'm surprised the number is as small as what it is," said Brian Piccioni, a BMO Capital Markets analyst.

American Technology Research analyst Doug Freedman believes the job cuts could "save the company about $40 million per annum in operating expenses and add 8 cents to the bottom-line."

AMD recently detailed its desktop plans for the next year, which the company hopes will help it regain footing in the CPU market.  It recently unveiled Agena FX, a quad-core desktop CPU, and plans on unveiling Phenom FX next week. 

The company remains engaged in a brutal price cut war with Intel.  Intel slashed prices on the Core 2-family late last month, with deeper price cuts expected this summer.  In addition, Intel was able to neutralize an entire year of AMD marketshare gains in one quarter.

While Intel released the Core 2 Duo chip last year, AMD believes its Barcelona technology will offer better performance since it has four cores on a single die.

Intel recently also announced that it will cut another 1,000 employees at a plant where some employees worked on  200mm silicon wafers.

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By rippleyaliens on 5/12/2007 4:59:38 PM , Rating: 0
AMD, biggest mistake is turning its back on a Huge number of customers, IE, the people who walk in to computer shops, and ask for the cpu's..
Now the only way to really get a AMD cpu based system, is either DELL, HP, or IBM. THey are still out there in mom and pop stores.. BUt obviously AMD doesnt understand, that small business MADE AMD, in the United States.. Companies may buy AMD servers, hear and there, but not in MASS bulk.. That takes 3-4 years, IE the life of a server, for a company to switch vendors, totally.

AMD was on such a good role, with the opteron, that they
1. ALMOST had a impace on servers, but with woodcrest systems comming in at the price they are , TOTALLY SHATTERED what ever AMD had.. IT has lost.. THey had the 4way, and the 8 way market.. BUT now, you can get a 8core 1u Machine, for 20% the cost of a 16core, 8-10 u server.
They sold allllll those cpu's to dell, hp, ibm, but poeople werent buying AMD's from DELL, HP, IBM, etc.... Bulk of AMD's (the mid to high end) were from computer stores, and online vendors.. Once you CUT them 1 time, good luck in regaining their trust..
They didnt cut prices, (IE lingered, and jacked the customers, for $$$$) NO new products, EVEN as of today.. A FULL YEAR after Core2..

UHH no, i wont buy from them, until they get their act together. Not because of quality, but why should i go out of my way to buy anything from them... They turned their back, got arrogant, and they are paying the price.. I predict, 1-2 years, before they even start regaining what they just lost.. ANd that assumption is based on their new product being competitive...

AND for the amd lovers... BE advised,, it isnt like Nvidia or INTEL are just sleep..IT's not like they already have their next gen stuff, on standby... IT will be interesting....

By ninjit on 5/12/2007 6:06:18 PM , Rating: 5
wtf is wrong with you?
Do you have capitalization-Tourettes or something?

That has to be one of the worst posts I've ever had the pain of reading.

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