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AMD to cut 400 jobs

AMD to cut 400 jobs

"AmaZING" - That 'zing' is the sound of the axe falling down on over 400 heads...

With the release of Intel's Core 2 Duo platform, there is little doubt that AMD has had its work cut out if it wanted to regain the performance crown in the CPU industry. The company's AM2 has been largely recognised as a patchwork solution, an upgrade to show that the company isn't comletely lounging about while Intel takes what's left of the market share. Unfortunately, it looks like the public isn't buying.

AMD announced its earnings for the first quarter of 2007 last week, which could be summed up in one word - 'dismal.' The poor sales of AM2 and the negative cash position from the company's acquisition of ATI was explained by AMD's CEO Hector Ruiz as 'unacceptable.' To help ease the blow on Wall Street, along with the news of the poor earnings report Ruiz announced the lay-off of up to five percent of its workforce, or 800 people.

The announcement was quickly followed by a list of guaranteed cuts - 430 jobs from R&D, Sales, Marketing and Engineering. Many of these jobs are in the USA, though a few are in the Ontario, Canada group. No jobs were lost in Dresden, Germany where AMD's fabrication plant is located. The effort to go 'lean and mean' could add a whopping eight cents per share to the bottom line and save the company over $40 million. If that's not enough, the other roughly 400 jobs will find themselves next on the chopping block.

Intel has done its own recent job cuts, eliminating 1,000 jobs from its New Mexico offices. The change was not based on going lean and mean, however - instead, it was for technological improvement. The lay-offs were for employees who worked on 200mm silicon wafers, and Intel has recently begun to use 300mm wafers.

Though AMD's financial figures are telling a tale of woe, the company has been very careful (almost a little too careful) to assure us that it's just going through a bit of a rough sales spot. Ruiz and company recently went on the record as saying its native quad-core solution is doing very well and that R600 (which is released today) will add a healthy contribution from ATI. However, the amount of energy going into assuring everyone of the company's waiting success is mildly alarming.

Do you have a thought on the job cuts or AMD's poor Q1 performance? Do you think Phenom and R600 are really enough at this point to put the company on safer ground? Tell us your ideas in our forums.

19 Comments

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Pie_uk 14th May 2007, 11:19 Quote
crap

that makes me feel bad :(
antiHero 14th May 2007, 11:37 Quote
Atleast they dont cut the jobs in dresden as AMD is and importent employer in that region. Still crap!
BioSniper 14th May 2007, 11:37 Quote
Talking of R600, are we going to see any news on it from Bit in the near future Tim? :D
Mother-Goose 14th May 2007, 11:52 Quote
Inevitable but sad all the same.
Tim S 14th May 2007, 12:02 Quote
Quote:
Originally Posted by BioSniper
Talking of R600, are we going to see any news on it from Bit in the near future Tim? :D
yes, I'm currently eating dry coffee granules so that I don't have to keep getting up to go to the toilet. :p
BioSniper 14th May 2007, 13:15 Quote
That's more info than I needed Tim :p
Nice to hear that you have some stuff coming, I cant wait.
Bladestorm 14th May 2007, 14:06 Quote
Quote:
The lay-offs were for employees who worked on 200mm silicon wafers, and Intel has recently begun to use 300mm wafers.

I can see it now :

"Congratulations chaps you've been the backbone of this department for years, now in relation to the new 300mm wafers, your all fired, we dont need you anymore."

Seems a little harsh to me
Krikkit 14th May 2007, 14:23 Quote
Sadly redundancy is a reality in a big company that has taken a turn for the worse; it doesn't really surprise that it's happened, and I'm sure they recieved a nice severance package for their inconvenience.
mikeuk2004 14th May 2007, 19:30 Quote
its the quickest way to save money and big companies dont care about the small guys. The real big way of saving money is for the big cheeses to take a pay cut and only buy a new ferrari every 5 years and not every year :)
DXR_13KE 15th May 2007, 00:09 Quote
Quote:
Originally Posted by mikeuk2004
its the quickest way to save money and big companies dont care about the small guys. The real big way of saving money is for the big cheeses to take a pay cut and only buy a new ferrari every 5 years and not every year :)

what he says.
Colonel Sanders 15th May 2007, 05:20 Quote
To some extent I hate to see people be fired, especially like what Intel did to the people working on 200mm wafers - I mean they probbably did quality work but then suddenly a new project comes along and they are jobless? Thats kinda messed up. . .

On the other hand, if they are being cut loose, maybe they were not important to the company, maybe their performance wasn't good.

L J
Spaceraver 16th May 2007, 22:36 Quote
I just hope some big company will back AMD so we dont get a monopoly. Or even buy it.
Shere Khan 13th May 2008, 17:12 Quote
Hi guys,do you work in AMD company?Could you tell me the average salary,I am radio technology engineer.
Bladestorm 13th May 2008, 18:51 Quote
Whats going on with this thread ? some of the responses sound like they are indeed in response to this article, and some of them are definetely in response to one about intel cutting jobs last year .. almost all of them are dated 2007 too.
Cthippo 14th May 2008, 19:53 Quote
The post above yours was a threat revival. Noobs have a special skill for resurrecting dead threads. :P
ModaRobby 30th January 2010, 16:21 Quote
Quote:
Originally Posted by Bladestorm
I can see it now :

"Congratulations chaps you've been the backbone of this department for years, now in relation to the new 300mm wafers, your all fired, we dont need you anymore."

Seems a little harsh to me

Yea that's kind of a slap in the face.
M7ck 30th January 2010, 18:37 Quote
Quote:
Originally Posted by ModaRobby
Yea that's kind of a slap in the face.

A 2 year old topic? Really? Why?
appeage09 31st January 2010, 08:11 Quote
Too bad Intel had decided to use such unfair practices in the first place. Who knows where AMD would have been on tech advancement. I doubt the money is going to help AMD catch up on tech, but it should help them advance some.
schmidtbag 11th June 2011, 19:41 Quote
430 is a lot of people but it isn't nearly as bad as it could have been. besides, think of it in this way - the people in marketing, sales, and engineering that were fired probably were not doing their job that well. the original phenom and these new bulldozers have had engineering flaws, i'm sure the people who caused these flaws were fired. as for the people in marketing and sales, amd is not profiting much and i've RARELY ever seen any advertisements from them. they have youtube channels that doesn't tell us very much about their products.

i'm sure amd wouldn't mind taking some of these people back if they get the money to do it, but i can understand how they can't afford it.
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