Sign in with
Sign up | Sign in

Report: AMD Cutting Up to 30 Percent of Global Workforce

By - Source: Tom's Hardware US | B 59 comments

There's a rumor that AMD is getting ready to reduce its current global workforce up to 30-percent.

AllThingsD reports that AMD may announce next week that it's cutting up to 30-percent of its workforce, or around 2,200 to 3,300 jobs. One source also claims the cuts won't be quite so drastic, ranging from 10 to 20 percent of AMD's workforce which would consist of around 1,170 to 2,300 workers.

Unnamed sources told AllThingsD on Friday that the cuts will affect employees involved with engineering and sales, and will be deep enough to force the chip maker into scaling back some of its product offerings. The current mood within AMD's halls are rather grim, one source said, and that many have expected these job cuts for quite some time.

"There are a lot of nervous people, and not a lot is getting done right now," the source told AllThingsD.

The job cuts may be revealed when AMD announces its quarterly results on October 18. Another source said the job cuts will be completed by October 25, ending a ten-day process. Either way, it would be the second time AMD reduced its workforce since Rory Read took over as CEO. The company trimmed off approximately 10-percent in early 2012 as part of the company's cost-cutting measures.

"AMD expects that the restructuring plan will result in operational savings, primarily in operating expenses, of approximately $10 million in the fourth quarter of 2011 and $118 million in 2012, primarily through a reduction of its global workforce by approximately 10-percent," the company said. "As a result of implementing efficiencies across the company's operations, AMD expects to save approximately $90 million in 2012 operating expenses in addition to the restructuring plan savings, resulting in more than $200 million of expected combined operational savings in 2012."

News of the job cuts arrive after AMD took a tumble in the stock market on Friday. Shares dropped 14.4 percent to $2.74 by the end of the day after the company said on Thursday that it expects third-quarter sales to fall 10-percent from the second quarter. AMD blamed the drop in sales on a weaker-than-expected demand for all of its major product segments. Previously AMD said third quarter 2012 revenue would only decrease 1-percent, plus or minus 3-percent, sequentially.

"The company now expects third quarter gross margin to be approximately 31-percent; less than the previous expectation of approximately 44-percent primarily due to an inventory write-down of approximately $100 million due to lower anticipated future demand for certain products," the company announced. "Third quarter gross margin was also negatively impacted by weaker than expected demand, which contributed to lower than anticipated average selling prices (ASPs) for the company’s Computing Solutions Group products and lower than expected utilization of its back-end manufacturing facilities."

AMD said it will report third quarter 2012 results after market close on Thursday, October 18, 2012.

 

Contact Us for News Tips, Corrections and Feedback

Display 59 Comments.
This thread is closed for comments
Top Comments
  • 27 Hide
    Bloob , October 13, 2012 8:02 AM
    Guess my upgrade will be AMD. Gotta support the little guy this time.
  • 22 Hide
    Benthon , October 13, 2012 7:13 AM
    Never been a fan of AMD, but this bodes well for no consumers.
  • 22 Hide
    amdfangirl , October 13, 2012 7:14 AM
    How will AMD compete with Intel if they lose more engineers? Sell their engineers to Intel?
Other Comments
  • 22 Hide
    Benthon , October 13, 2012 7:13 AM
    Never been a fan of AMD, but this bodes well for no consumers.
  • 22 Hide
    amdfangirl , October 13, 2012 7:14 AM
    How will AMD compete with Intel if they lose more engineers? Sell their engineers to Intel?
  • 17 Hide
    SteelCity1981 , October 13, 2012 7:31 AM
    They have to do what they have to do to keep surviving as a company and if scaling back on the workforce is what they have to do to survive then they have no other option but to do that for the time being until the economy picks back up again. Either that or go under and no one wants to see that because if that happens Intel will stop reducing the price of their processors and it will be like the pre AMD competition years all over again.
  • 18 Hide
    zanny , October 13, 2012 7:32 AM
    amdfangirlHow will AMD compete with Intel if they lose more engineers? Sell their engineers to Intel?


    AMD already takes in revenue that is less than what Intel spends on R&D alone. The two companies are on completely different tiers of scale.

    nieurthey need to invest in their own fab


    They had their own fab, they spun off Global Foundaries to pay for buying ATI.
  • 14 Hide
    goodguy713 , October 13, 2012 7:33 AM
    I really do hope they pull out of this slump there in but that's a hell of an up hill battle..
  • 0 Hide
    de5_Roy , October 13, 2012 7:39 AM
    qualcomm will hire. they already have quite a few ex-amd'ers...
  • 27 Hide
    Bloob , October 13, 2012 8:02 AM
    Guess my upgrade will be AMD. Gotta support the little guy this time.
  • 12 Hide
    markem , October 13, 2012 8:41 AM
    Am with you on that :) 
  • 9 Hide
    assasin32 , October 13, 2012 8:46 AM
    Yup hoping AMD recovers from this with fists swinging they need to give Intel some competition, even if it's not on their high end and they just compete mainly with their low and mid range CPU's I be happy (though not as happy if they keep toe to toe with them on everything). I do not want Intel to have a complete monopoly I rather like some competition to drive them to be better.
  • -7 Hide
    markem , October 13, 2012 8:48 AM
    AMD BOARD MEMBERS IS KILLING AMD SLOWLY BY SUCKING IT DRY AS LONG AS POSSIBLE.. oops sorry for CAPS

    Rory Read & Board Members will not be touched as usual... that just shows AMD will die a slow death by sacking engineers instead.. clever move by Rory and board
  • 6 Hide
    ekho , October 13, 2012 8:49 AM
    I dont know, perhaps its because I referred to another website
    Toms News in some sides are really old, BTW
    When I commented here:
    http://www.tomshardware.com/news/amd-cpu-stock-market-share,18384.html
    I got thumbs down and suddenly the report was on the Toms as I've said.
  • 0 Hide
    markem , October 13, 2012 8:51 AM
    Share holders need to wake up asap and sack Rory Read and the whole mess of Board Members.. the Board of AMD has failed miserably many times and are still going strong.. what a joke
  • 8 Hide
    memadmax , October 13, 2012 9:19 AM
    Not an AMD fan, but this is not the first time this has happened.
    It's really not AMD's fault, it's a global economic cooldown.
    As bad as it sounds, I'm actually glad they are doing this instead of being stubborn until it's too late and they have to file for bankruptcy.

    They'll be back... again.
  • 4 Hide
    iamtheking123 , October 13, 2012 9:27 AM
    And guess who has 2 thumbs and got whacked on that stock suicide fall...this guy...down 2 grand in 10 minutes thanks to their brilliant idea of making a negative PR forecast.
  • 4 Hide
    fonzy , October 13, 2012 10:03 AM
    Apparently AMD is cutting into it's graphics division (ATI) as well, having much of it's engineering outsourced.
  • 8 Hide
    axehand13 , October 13, 2012 10:14 AM
    Sounds like a good time to buy some AMD stock at $2.74 a share.
  • -1 Hide
    tomfreak , October 13, 2012 10:28 AM
    If u guys seriously want to support AMD, buy the GPU department. Stop punishing urself by buying their crappy CPU. GPU is the only area where they do pretty good. If I want my money to be in AMD's pocket it will be on GPU, not CPU
  • 3 Hide
    goodguy713 , October 13, 2012 10:30 AM
    buy the stock once it becomes a penny stock..
Display more comments