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AMD to decimate workforce
Author: Gareth HalfacreePublished: 9th April 2008
AMD is hoping that new products like the Phenom processor are going to be enough to save the remaining nine-tenths of its workforce.
The company is reportedly looking to lay off around ten percent of its global workforce – that's about 1,700 people who'll be looking for work real soon now. Having reported a first-quarter revenue for the year of $1.5 billion – that's down from the expected $1.6 billion investors were hoping for, and a whopping 15 percent lower than Q4 2007 revenue – the company is hoping that the belt tightening exercise will be enough to get back its investors' confidence.
AMD, which is best known for manufacturing CPUs and ATI graphics cards, was hoping that increased availability of its Phenom processors alongside price cuts to its Radeon HD 3850 and 3870 graphics cards would be enough to bolster sales, but has reported that the company experienced lower than expected sales across their entire range of products.
The company has every reason to expect an improved second quarter, however: Phenoms are no longer the rare-as-hens-teeth chips they once were, and the company's clever triple-core processors are likely to tempt people away from rival Intel's dual-core systems. Whether that will be enough to steal customers back from a market dominated by Intel remains to be seen.
Investors have been warned to expect an additional charge to be whacked on to Q2 earnings for unspecified 'restructuring', so even if revenue rises the overall earnings could still look pretty grim for the company.
Are you a die-hard AMD fan hoping to see the plucky underdog make a comeback as they have done before, or did Intel tempt you into their clutches with the excellent Core 2 series of chips? Share your thoughts over in the forums.
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Comments (17)
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I just see the lay off as the quickest way of keeping the investors on board.
Btw, first line on second paragraph, change 'law' to 'lay'.
Still, the best thing about this article? Someone knows how to use the word 'decimate' properly. :D
AMD seems in a tight spot. I think this is a perfect opportunity to drag Sun Tzu into this: choose your enemies as carefully as you choose your friends. AMD picked the wrong people to mess with IMHO. nVidea only needs to run on half-steam to beat the ATI cards atm, and Intel's murderous Tick-Tock pace is something i wouldn't wanna be up against.
I do root for the underdog though, i hope they start pulling some rabbits out of the hat soon.
Competition is good however at the moment there simply isnt any.
AMD need to invest there money in R&D and look to the future to find something that can challange Intel and surpass, but its a vicious cycle if you cant make the products now and sell them you cant invest in the future and if you cant invest in the future you cant make the next product line any better.
For me AMD shouldnt of boguht ATI anyway
I agree they really need to step it up, but this is all after-the-fact. They know this. And I'm sure they're working on it. They ain't givin' up the farm yet. ;)
It was a way of enforcing discipline in the Roman Legions, IIRC. A harsh way, but a way nonetheless.
Killing 1 in 10 of its workforce wouldn't make them too popular with their share holders.
dammit, now i can't stop imagining the CEO of AMD as an over the top bond villain.