AMD to Cut More Than 400 Jobs
May 11, 2007 4:52 PM
comment(s) - last by
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."
detailed its desktop plans for the next year
, which the company hopes will help it regain footing in the CPU market. It recently unveiled
, a quad-core desktop CPU, and plans on unveiling
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
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.
This article is over a month old, voting and posting comments is disabled
RE: Intel eliminates 11,500 jobs and closes Fabs
5/12/2007 4:59:38 PM
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....
RE: Intel eliminates 11,500 jobs and closes Fabs
5/12/2007 6:06:18 PM
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.
"DailyTech is the best kept secret on the Internet." -- Larry Barber
AMD Claims Quad-core Desktop CPUs Ready for Christmas
May 10, 2007, 3:11 PM
Intel Cuts Another 1000 Jobs
May 3, 2007, 1:01 PM
Intel Wipes Out AMD's 2006 Marketshare Gains in One Quarter
April 24, 2007, 8:03 PM
Intel Slashes Prices and Silently Launches New Models
April 21, 2007, 3:26 AM
AMD Posts $611 Million Net Loss in Q1
April 19, 2007, 9:13 AM
Tinkerer Gets Old School Mac Plus Running on the Modern Web
March 24, 2015, 6:41 PM
Facebook-Backed Oculus Rift's Release Date Slips to 2016; Valve and HTC Salivate
March 16, 2015, 5:58 PM
Hackers Steal Roughly $1 Billion From Banks Using Malware RAT
February 17, 2015, 9:30 AM
NVIDIA Kills Mobile GPU Overclocking, Robs Customers Who Paid For It
February 16, 2015, 8:59 AM
Apple Offers Refurbished 5K Retina iMacs for $2,119 Online
January 16, 2015, 12:37 PM
SanDisk Unveils Pricey iXpand USB 2.0/Lightning Drive to Expand iPhone, iPad Storage
November 13, 2014, 2:29 PM
Most Popular Articles
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Half a Billion Dollars of U.S. Weaponry May be Lost to al-Qaeda, Rebels in Yemen
March 23, 2015, 2:12 PM
Samsung, Dell, Pegatron to Preinstall Microsoft Office 365 on Android Devices
March 23, 2015, 4:02 PM
Texan WISP Owner With Colorful History Sues to Block FCC Net Neutrality Rules
March 24, 2015, 1:19 PM
NVIDIA's Latest Windows 10 Drivers: Still Too Unstable For Primetime
March 24, 2015, 4:45 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information