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: AMD-ALL MANAGEMENT DISASTERS
5/13/2007 1:40:09 AM
Here is some more speculation of Asset lite
AMD: asset-lite coming!
It looks like AMD has learned some things from the ATI acquisition in the form of using major foundries. Hector actually stated that in the conference call!
The difference here compared to the recent move by Texas Instruments is that leading-edge production will remain in-house at Fab 36 and later at Fab 38. Trailing-edge MPUs, which are a big part of the market and especially the ‘channel,' look like perfect products for shipping out to foundries.
This could give some great flexibility to AMD, who could hint that not only will they use Chartered Semiconductor more for 90nm devices, but that they could also use IBM's Building 323!
The fact that Fab36 is fully converted to 65nm and is not being affected by the $500 million capex cut means that we can expect continued ramp of dual- and quad-core for the rest of the year. This is important as this area is the server market honey pot.
The sacrifice being made is Fab 30. Basically, the rate of pace of the 200mm to 300mm conversion at the Dresden fab will slow, though it might be more likely that the pace will stop completely!
RE: AMD-ALL MANAGEMENT DISASTERS
5/13/2007 9:10:32 AM
This article seems to say that they will used Chartered to augment production, just like they did before, if the demand is greater than there production capacity. So asset-lite is just adding this to there own production. Building more fabs simply can't be done with the budged they have right now, they won't go fab-less.
They just can't afford to work like Intel and have enough fab and do a rotation of which fab has the most advanced process.
Maybe one day... but not today.
“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
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
12/9/2013 Daily Hardware Reviews
December 9, 2013, 5:34 PM
Samsung Unveils "Industry First" 1TB mSATA SSD
December 9, 2013, 10:21 AM
12/4/2013 Daily Hardware Reviews
December 4, 2013, 5:43 PM
12/2/2013 Daily Hardware Reviews
December 2, 2013, 3:41 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
11/27/2013 Daily Hardware Reviews
November 27, 2013, 9:53 AM
Most Popular Articles
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Man Arrested for Using 5 Cents Worth of Electricity to Charge Nissan Leaf at Middle School
December 4, 2013, 8:00 PM
New Reversible "Type-C" USB Plug Coming in Mid-2014
December 4, 2013, 10:38 AM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information