Feeds

AMD will cut 10 per cent of global workforce

Decimation by Q3 or bust

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?