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AMD rumoured to be slashing 2,000 jobs

AMD rumoured to be slashing 2,000 jobs

AMD's sales and engineering divisions are rumoured to be facing job losses of up to 30 per cent as the company struggles to improve its margins.

AMD's belt-tightening continues: as well as measures that resulted in a 7 per cent drop in operating costs last quarter, the company is claimed to be about announce job losses that will see over 2,000 workers lost from the sales and engineering divisions.

Not yet confirmed by AMD itself, the claims come from anonymous sources speaking to AllThingsD and state that between 2,200 and 3,300 employees - around 20 to 30 per cent - will be laid off from the sales and engineering divisions. The claims come days after AMD reported a whopping 10 per cent quarter-on-quarter drop in revenue and a serious 13 point drop in margins.

If true, the cuts are a serious indication that AMD is struggling. Previous job cuts at the company have spared the sales and engineering divisions, for obvious reasons: without engineers, the company will never be able to develop its products to the point where it can offer a truly competitive alternative to Intel chips at the high end, and without sales staff it becomes significantly harder to sell existing products in order to fund future development.

Official confirmation of the cuts is expected by the end of the month, with AMD refusing to comment on 'rumours or speculation' at the present time.

Investors haven't reacted to the rumours with the same calm as the company's revised quarterly earnings report: following publication of the rumours, AMD's share price dropped from $3.20 to just $2.74 - a drop of over 14 per cent. While the cuts may be necessary to ensure the company's continued survival, it's clear investors are concerned that - coupled with a 10 per cent drop in headcount announced earlier this year - the move may leave AMD understaffed and unable to offer Intel the competition required to make an impact in the market.

15 Comments

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Snips 15th October 2012, 12:16 Quote
Ouch!
DbD 15th October 2012, 12:32 Quote
Getting towards the end game if you are cutting that many - certainly they will have to leave a lot of markets as they won't be able to keep competing in all over them with less people.

It's gonna hit the Ati driver team hard, would worry if you are using xfire, eyefinity, old gen cards, or anything fancy.
Griffter 15th October 2012, 13:57 Quote
****ing assholes! cos they never reached their projected 100billion trillion CLEAN PROFIT they will fire 2000 pple and ruin 2000 families lives!!!

why not just take 1% from the two top dogs at AMD and make double the savings as to fire 2000 ppl!

ASSHOLES!
CAT-THE-FIFTH 15th October 2012, 14:01 Quote
As I mentioned before,even Intel has announced they will have lower than expected revenue this quarter too:

http://forums.bit-tech.net/showpost.php?p=3187830&postcount=11

PC sales are down for the first time in a decade. It really does seem we need to be nice to our new tablet overlords!!:p
dicobalt 15th October 2012, 14:30 Quote
Bulldozer did it. I sincerely hope AMD has a new architecture up their sleeve and not more Bulldozium 4. If they don't have something then someone is going to buy them out because they are loosing any sense of competitiveness where it really matters.
.//TuNdRa 15th October 2012, 17:02 Quote
I love the way they're firing Engineers, those people who actually design the chips, even if the chips don't do that well. Soon AMD will have no Engineers and go "OH NOEZ! WE CAN'T DESIGN NEW CHIPZ!"
ssj12 15th October 2012, 19:59 Quote
Quote:
Originally Posted by Griffter
****ing assholes! cos they never reached their projected 100billion trillion CLEAN PROFIT they will fire 2000 pple and ruin 2000 families lives!!!

why not just take 1% from the two top dogs at AMD and make double the savings as to fire 2000 ppl!

ASSHOLES!

Democrat or person with no understanding of business? Wait, same thing.

Have you not noticed AMD execs have been leaving them as well? AMD is a sinking ship, constantly in the red. You have to earn money in order to run a business. Even if a CEO and top 5 execs take 1% of their salary for a year it would not cover the loses they have.
rollo 15th October 2012, 21:12 Quote
AMD need a magic chip that blows everything Intel Arm currently have on the market, 1 for tablets 1 for desktops. They also need to get back some of the High end market ( Servers, Custom High End Rigs) These markets are now completely dominated by Intel. They have lost alot of customers in that range who paid big bucks for chips for Workstations and servers.

If in the next 2 years AMD does not produce a chip that can at least counter intels mid range series of chips the 3570k 3770k then they may as well say they are dead and wait a buyout from Apple or Samsung for patents and GPU tech. They are also fabless so dont even have a way to sell stuff to tide them over if the worst comes to worst

Intels 6 core Cpus are a lost cause for AMD and they will not get close this side of a miricle.

shares are at $2.7 per share which is nothing they are ripe for a buy out and if S&P have there way they will be in bigger issues Oct 18th is a big day in the history and survival of AMD.( This is day when they have to state there intensions for next quaters to shareholders including how they intend to fix there current losses)
rollo 15th October 2012, 21:13 Quote
Market share in Consumer CPU space for AMD less than 18%
Market share in Server CPU Space less than 5%

These are confirmed figures by finacial companys
Joey Propane 15th October 2012, 21:21 Quote
Pretty sad really, we all know AMD has been slowly losing ground in every market, but I really didn't think that i'd ever be sitting here seriously contemplating the end of the company as we used to know it...

Slightly frustrating in a sense as well to be honest, they financially crippled themselves when they bought ATI and it's probably the money from their products that has kept them afloat this long. Maybe it would have been better for both parties if that deal never went through, I would sure as be pissed if they took what's left of ATI under with them.
dolphie 15th October 2012, 21:33 Quote
Yeah they are just in a headlock without the products to win. I have an AMD graphics card now and I like it, but the lack of physics is a bit of an issue to me because some games use it, and yet the price of nvidia equivalents is similar and performance is similar, so are temps and volume, so when I next upgrade, nVidia is the only choice really. I only bought my current one as AMD because it was much quieter at the time than the nvidia alternatives, but they since solved that.

And then with CPU's, Intel have been on a roll the past several years. I remember when a lot of gamers started using AMD chips, I think it was when they first started having 64bit chips, before intel came along with the Conroe processor. But nowdays, all the enthusiasts and gamers just have intel.

They need an angle. I bought an AMD chip for an HTPC because it was so energy efficient. Even that could be something, but they need to have the best of something, whether it's top end gamer processors, super efficient htpc / laptop type chips, or even try to beat Arm at their own game and make something for smartphones or whatever.

Something... anything... come on amd!
LordPyrinc 15th October 2012, 21:40 Quote
I can see why PC sales are down. The global economy hasn't been all that rosy the last few years. Many people make due with what they have. A five year old computer today, isn't nearly as useless a relic as a five year old PC would have been just a few years ago. Hell, I've got a 5 year old HP backup PC (upgraded PSU and GFX card) that's still better than a lot of computers my friends use. Most of them, however, do their gaming on consoles and not so much on their PCs. You don't need much hardware to run web browsing and an Office type suite.
Stickeh 16th October 2012, 07:28 Quote
Amd really should be pushing vendors OEM manufacturers with their APU chips, it makes so much sense for cost vs performance for basic systems.
lysaer 16th October 2012, 08:26 Quote
Quote:
Originally Posted by Griffter
****ing assholes! cos they never reached their projected 100billion trillion CLEAN PROFIT they will fire 2000 pple and ruin 2000 families lives!!!

why not just take 1% from the two top dogs at AMD and make double the savings as to fire 2000 ppl!

ASSHOLES!

Lol I highly doubt taking 1% from anyone in AMD would make the slightest difference.

Besides they just did 2000 people a favour to find a job with a company that isn't going down the drain

Sent from my GT-I9300 using Tapatalk 2
Quuwahi 16th October 2012, 08:36 Quote
Always had AMD systems as they were cheaper, but ever since I started to work I went right to Intel as they offer better high end stuff now.

Would be sad if AMD go, less competition for Intel means higher prices.
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