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AMD Reportedly Preparing Massive Layoff

Posted by ryuzaki0 on from the might-want-to-put-all-your-stuff-in-a-box dept.

An anonymous reader writes "AMD is preparing to lay off 20 to 30 percent of its workforce after warning of a 10 percent decline in Q3 revenues driven by the weak global economy and PC sales, according to AllThingsD's Arik Hesseldehl. The layoffs will reportedly focus on engineering and sales, and are in addition to a 10 percent headcount reduction 11 months ago. Teams of consultants from McKinsey and Boston Consulting Group are reportedly swarming headquarters to advise the CEO Rory Read, who took over from Dirk Meyer a little over a year ago; several senior executives, including the CFO, have recently departed."

3 of 286 comments (clear)

  1. Re:How about laying off the consultants instead? by mewsenews · · Score: 5, Informative

    Especially the engineers. You need engineers to keep doing what you do. This really bodes badly for AMD, because without engineers, they're basically slitting their company's wrists. I'll bet dollars to doughnuts that they're getting rid of the ones with seniority at that to try to save a few bucks on salary while simultaneously bleeding themselves out of knowledge and experience.

    Early retirement - the perfect recipe for short term savings and long term loss of institutional knowledge!!

  2. Re:10% decline in quarterly revenues? by Anonymous Coward · · Score: 5, Informative

    Uh, yeah.

    Down 6% in Q1, down 11% in Q2, and they were expected to be down 1% in Q3... instead they were down 10%.

    Meanwhile they're not competeing in servers or smartphones, the PC market is shit and it isn't looking like it's going to get any better. Laptops are the one place they're strong, and nobody is optimistic on laptop sales.

    It's bleak over there, and believe it or not, they've got a pretty good idea of just how bleak it is.

  3. Re:Byte the bullet & make ARM chips by Rockoon · · Score: 5, Informative

    Have a foot in both x86 and ARM.

    You arent very well informed. AMD doesn't fab processors, so cannot possibly fab ARM processors. AMD is like ARM now and only designs processors, but unlike ARM they do not license the design out (probably they cannot, thanks to IP deals with Intel.)

    AMD spun off their fab business in 2009, which is named Global Foundries, divesting their last shares in the company earlier this year.

    --
    "His name was James Damore."