AMD to Slash 10 Percent of Workforce to "Optimize Cost Structure"
AMD, the world's second largest maker of computer microprocessors with an approximately 20 percent share of the global market, announced a "restructuring plan and implementation of operational efficiency initiatives" that involves handing out pink slips to 10 percent of the chip maker's workforce. The layoffs are part of an overall effort to save the company more than $200 million in 2012.
"Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD's competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth," said Rory Read, AMD president and CEO. "The actions we are taking are designed to improve our ability to consistently address the needs of our global customer base and stake leadership positions in lower power, emerging markets and the cloud."
The layoffs, which will occur across all functions of AMD's business on a global scale, will have an immediate effect on the chip maker's bottom line, saving the company $10 million in the fourth quarter of 2011, and another $118 million in 2012. AMD got to its greater than $200 million figure by including the implementation of operating efficiencies expected to save the company an additional $90 million.
This announcement comes two years after AMD spun off its manufacturing business, which at the time saw the elimination of 1,100 jobs. Rory Read was appointed CEO of AMD in August of this year.
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Deviate
November 06, 2011 at 11:42am
Definitely disappointing to see this come from AMD, as an AMD supporter. So.. Instead of focusing/investing on making an actual performance competative product, they'd rather produce mediocrity and "trim fat" to preserve profits and bonuses for the executives? Sounds just like every other corporate giant out there.
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Silencer
November 06, 2011 at 1:56pm
My interest is like yours. I'd like to see last year's Bonus List. (No guessing.)
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Silencer
November 06, 2011 at 5:16am
Sounds like they're clearing dead weight. Wish they'd re-compete on the desktop.
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Ghost XFX
November 05, 2011 at 7:08am
Being that this FX proc fell short of it's goals, perhaps this was the smartest move that could have been made? Somebody had to of known there was going to be a failure with this chip. I find it very hard to believe that not a single soul realized what was going on before it's release to the market. I won't find Read at fault here, he replace "the last guy" in August. 3 months in, was he even aware just how bad off this CPU was?
Even with this said, Bulldozer isn't awful. It simply doesn't reach the goals expected from it, particularly for single thread performance, which of my opinion, is dated and high time developers step their game up as well. For crying out loud, Intel has been doing single thread chips since the freaking 70's, we're talking over 40 years here.
AMD have about a year to figure out what occurred to make this cpu fall so short, before Vishera is ready to walk to the stage. They can't afford to fall short again. But in order to do that, developers play a part in this as well. Yes, AMD didn't do a very good job with Bulldozer, but these lazy good for nothing developers need to expand on thier ability to create better programs as well. Expand their horizons a little bit, and we may just see a new age of home computing.
Thinking about it, I'll say this about the upcoming Vishera cpu, perhaps AMD needs to scale back and make it a 4-6 core instead of 10. Thanks to developers in general dragging their feet and backside along the dirt road, 8-10 cores would be useless for the time being. I get what AMD is trying to do, and truth told, it's BOLD of them to give developers so much to work with (Intel didn't do it which was smart of them). But they could careless it seems, as long as they can make something quickly and get paid good for it. I'd hate to see Vishera fall flat too, under the same exact circumstance.
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codyandbecca
November 05, 2011 at 3:00am
Way to make yourselfs look like a bunch of retards AMD, just after the launch of your so called successful CPU, which; by the way, was a huge dissapointment for those of us who are AMD fans, you decide to cut 10% of the people/jobs that MAKE your company ??!?? WTF!? WTF!? WTF!? How about instead you hire 10% more poeple and lock them in a room so you can actually come out with a CPU that will compete with Intel, not just on a price point but in I don't know preformance ?? You let me down with this AMD... I don't want to admit it but things here on the green side are looking pretty shitty right now, blue side has the right stuff... you ? The aging 1100T ? oh and "Bulldozer" the Intel killer that gets its face tore off by the 2500k and the 1100T at the same clock ?!? DISAPOINTING! WHO THE F! CARES IF YOU CAN CLOCK IT TO 5834589353 GHZ IF THE PREFORMANCE SUCKS ????
Point is AMD you are Fing yourselves big time right now and you can't see it, I really hope the rumored Windows 7 Bulldozer schedular patch is real, that way we all wont feel Fed out of our $300....
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Budman_NC
November 04, 2011 at 4:33pm
You have to wonder if Intel would be interested in any of these folks. Rory Read's "statement" sounds like the same crap we heard when the tech company I worked for moved to Mexico. But we need AMD to be successful or we'll be at Intel's mercy even worse than we already are.
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