Feeds

AMD will cut 10 per cent of global workforce

Decimation by Q3 or bust

Boost IT visibility and business value

AMD plans to cut 10 per cent of its workforce over the next two quarters, after suffering lower-than-expected sales across all business units, the company said today.

The chipmaker revealed the flesh shedding, which will affect more than 1,600 people, in an update to its first quarter outlook, which AMD will detail on April 17.

AMD expects revenue to come in at $1.5bn, a 22 per cent increase year-over-year, and 15 per cent decrease compared with the previous quarter.

Late last month, a rumors began circulating that AMD already cut 5 per cent of its workforce in light of the gloomy quarter. AMD had denied the claim, and at the time refused to comment on any impeding layoffs.

AMD spokesperson Drew Prairie confirmed today that the layoffs have not yet begun, although they'll start beginning mid-April and ending in the third quarter 2008. He said the reduction will span all groups and levels across the company's global operations.

Prairie said there were cost structures that needed to be reduced due to low revenue expectations. He said AMD's lineup for the upcoming year, however, has great potential for revenue gains. Who would have guessed?

AMD shot itself in the foot by failing to push out a four-core version of its Opteron chip on schedule. This delay allowed Intel to regain market share with server processor sales.

The upcoming year is almost certainly do-or-die for AMD CEO Hector Ruiz, who stated he expects the company to return to an operating profit in the third quarter of this year. It would appear his master plan has been revealed. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.