Feeds

AMD will cut 10 per cent of global workforce

Decimation by Q3 or bust

The next step in data security

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.