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AMD to cut 30 percent of their workforce next week

by on14 October 2012 1742 times
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Even though Advanced Micro Devices announced last year that they will cut 10% of their workers by the end of 2012's first quarter, things are even worse now. After they announced that expected sales will decrease approximately 10% from the last quarter, they are expected to announce in increase to the number of workers cut to go up to 30% because of weak sales. Rumors are that AMD plans  to announce the workforce cuts between 20% and 30% next week, and it will focus on jobs involving sales and engineering.

Beside the workers losing their jobs, this move could have bad impact on AMD offerings to the market. Apparently the $118 million they saved by releasing workers at the beginning of the year was not enough to make a comeback and make positive corporate actions. Poor sales and global crisis had an impact on the AMD. The announcement from AMD should come on October 18th when they announce their quarterly results and the cuts may be completed by the October 25th.

The exact date of the announcement is still unknown but rumors going around are saying that it will be most probably in next two weeks. Some workers have been expecting this after 1,400 jobs suffered from reduction in first quarter and as the sales continued to drop, it was obvious what would follow. The next wave of cuts could leave from 2,200 to 3,300 workers without their jobs at the company. AMD is not the only company in this sort of trouble; some of the other huge giants like HP and Sony had to release workers, so for the sake of people that need their jobs and customers that expect new products let hope that crisis will end as soon as possible.

[Ed – The AMD job cuts come at a rather crucial time for AMD. The desperately need top notch engineering staff to help the overcome a few technical obstacles that have been plaguing their CPU designs for a while. Although some of their newer products such as Trinity and the anticipated new FX series CPUs are a step in the right direction AMD still has some work to do and their partnership with the ARM manufacturers is not going to be enough to get them through. These cuts will also fuel the rumors that AMD could be up for sale to someone like Samsung, Qualcomm or even Texas Instruments.]

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Last modified on 14 October 2012
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