AMD to decimate workforce

April 9, 2008 // 9:14 a.m.

Tags: #amd #decimate #earnings #intel #layoffs

Chip maker AMD is feeling the effects of rival Intel's successes with the Core 2 processor range, and is looking to trim its expenses accordingly.

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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