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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."

2 of 286 comments (clear)

  1. It doesn't really matter. by Anonymous Coward · · Score: 5, Insightful

    Intel will just give them a few billion. Cheaper than to deal with antitrust issues if AMD goes bankrupt.

  2. Re:Consultants are not the devil by KingSkippus · · Score: 5, Insightful

    I don't think the kind of consultant you are talking about and the kind of consultant referred to in the summary are the same kind of consultant:

    Teams of consultants from McKinsey and Boston Consulting Group are reportedly swarming headquarters to advise the CEO Rory Read...

    These are the kind of consultants that tell the CEO that he doesn't need those expensive engineers with health benefits and unemployment insurance. For a reasonable fee (that will end up costing AMD even more money in the long run), these consultants will be able to bring in some of their company's other consultants and not have to worry about silly little things like benefits, thus reducing costs. For the next financial quarter or two--certainly long enough to cash out your stock options and find another job at a company that will pay you more because of your success here--it's win-win!