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AMD Preparing For More Layoffs

By - Source: AllThings D | B 53 comments

AMD employees are not getting much room to breathe these days. In addition to the 1,700 people that were just cut recently, AMD will be laying off an undisclosed number of people in the first half of 2013.

According to AMD, more pink slips are the result of previously announced restructuring actions to be taken over the next few months and while the number of cuts is believed to be smaller this time around, and while AMD apparently will not be letting anyone go before Christmas, there are certainly better news than having to look for a new job in the new year.

AllThings Digital refers to a few internal sources and states that AMD may be trying to get some of the layoffs right it did not get right before. Apparently, AMD is dealing with a dynamic environment at the moment, with no layoffs taking place before the leadership knows how many people are willing to leave voluntarily. Of course, such a policy may not help to boost an already low morale inside the company and some painful decisions may be dragged out rather than being done.

The layoff story adds to a rather interesting rumor that AMD is shopping for a buyer. AMD carefully denied that rumor, blaming it on a recurring phenomenon in the media. In a statement, the company said: "AMD is not actively pursuing a sale of the company or significant assets at this time." That statement may be the best description of AMD's leadership problem at this time: AMD's strategy and future is about as transparent as the meaning of "actively pursuing".

AMD's leadership has yet to describe a clear path to its employees and the outside how it intends to turn the company around. Even with reaffirmed notes that the company is on the right path, it's difficult to understand what AMD actually does. Our sources at AMD told us that it is not much better on the inside.

AMD does not need more bad news, delays and certainly not more blurry statements. AMD needs a clear message more than ever before. 

 

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Top Comments
  • 17 Hide
    edogawa , November 22, 2012 9:46 PM
    Even though I highly prefer Intel, AMD has some pretty good budget processors. I hope the best for them to restructure and come back strong.
  • 14 Hide
    dudewitbow , November 22, 2012 9:12 PM
    I'm going to assume they are cutting out several of the people who aren't pulling their weight for their cost for the most part, and keeping those who are doing well(like the group of coders who pushed out 12.11)
  • 10 Hide
    valkain , November 22, 2012 9:07 PM
    As sad as it is, AMD sounds like dinged up leaky ship that is progressively taking on water. Management is gutting and cannibalizing the insides of the ship just to keep it floating.
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  • 10 Hide
    valkain , November 22, 2012 9:07 PM
    As sad as it is, AMD sounds like dinged up leaky ship that is progressively taking on water. Management is gutting and cannibalizing the insides of the ship just to keep it floating.
  • 14 Hide
    dudewitbow , November 22, 2012 9:12 PM
    I'm going to assume they are cutting out several of the people who aren't pulling their weight for their cost for the most part, and keeping those who are doing well(like the group of coders who pushed out 12.11)
  • 3 Hide
    esrever , November 22, 2012 9:14 PM
    I wonder how many people they want to have left. Won't be too many after all of this.
  • 3 Hide
    someoneelse , November 22, 2012 9:23 PM
    It seems to me that AMD is so far off the pace in cpu's that their only hope is if one of the next generation of consoles use AMD fusion processors as it's main chip then maybe we'd have AMD optimized game code - put AMD back in the game. I doubt it would make a differece but a man can wish.
  • 17 Hide
    edogawa , November 22, 2012 9:46 PM
    Even though I highly prefer Intel, AMD has some pretty good budget processors. I hope the best for them to restructure and come back strong.
  • 2 Hide
    abbadon_34 , November 22, 2012 9:48 PM
    someoneelseIt seems to me that AMD is so far off the pace in cpu's that their only hope is if one of the next generation of consoles use AMD fusion processors as it's main chip then maybe we'd have AMD optimized game code - put AMD back in the game. I doubt it would make a differece but a man can wish.


    Of course then they'd probably bail on PCs alltogether, or Nintendo buy them
  • 2 Hide
    spentshells , November 22, 2012 9:48 PM
    AMD isgoing to be a big winner after the next of apu get down below 80 watts.

    picture a core 2 Quad at 4 ghz or 1st gen i7 with with 6770 intergrated
    its coming sooner than later.

    The hawell die shrink is uninteresting to me cause my pc is large and I don`t mind the juice but I feel the intel intergrated gpu seriosly lack in performance is greater than the amd cpu lack in performance and as hd everything keeps stepping forward not today but in 2 years amd will come about

    I run intel but intergrated gpu they have sucks
  • 3 Hide
    spentshells , November 22, 2012 9:49 PM
    lacks
  • 1 Hide
    balister , November 22, 2012 9:52 PM
    Too many missteps with the with their latest CPUs has really cost them unfortuneatly. While the video card side of the house seems to still be doing well, the CPU line is lackluster. Rather problematic in the desktop/server segment as it leaves no real challenger to Intel which could cause the prices of processors in both the desktop and server segments to rise. One has to hope that somehow they'll return to form, but it doesn't look good right now.
  • 5 Hide
    Mathos , November 22, 2012 9:53 PM
    This is the same mentality and logic that killed Hostess as far as I can tell. But, it's how "business minded" management runs things. Give themselves big pay raises, and cut your staff. Then wonder, gee how come we can't come out with anything or make anything worthwhile. I think it's high time we take these CEO's that keep running companies into the ground. Try them for fraud and high treason, and throw them to the wolves, or the people who use to work for the company or buy their products and see how long they live.
  • 1 Hide
    nforce4max , November 22, 2012 10:05 PM
    If I had the chance I would immediately fire the majority of the VP and other management staff in that company then overhaul it. AMD needs for a time hire a third party to asst in driver development and to change over as much of it cpu/apu manufacturing to TSMC.
  • -3 Hide
    wemakeourfuture , November 22, 2012 10:35 PM
    abbadon_34Of course then they'd probably bail on PCs alltogether, or Nintendo buy them


    Nintendo buy AMD? One, Nintendo is a dying company and is bleeding money. AMD actually has a better chance of survival than Nintendo. In both cases you want to short these companies unless rumours of takeovers start to happen.
  • -2 Hide
    JJ1217 , November 22, 2012 10:36 PM
    The only reason why I am kind of wary about buying one of their HD 8000's later this year/early next year is because of all these layoffs. Kind of makes me scared how AMD users will be left in the dust for their warranty and what not, driver support, etc.

    I hope they get it together. Hopefully they can pull quite a bit of cash from the next gen consoles.
  • 6 Hide
    Ragnar-Kon , November 22, 2012 10:41 PM
    Granted I do not consider myself a businessman, so what the hell do I know about running a business... BUT....

    They should just hurry up, make the cuts they need, and then get their employees back to making the best products they can make. Employees who are constantly worried about losing their jobs aren't going to make outstanding products.
  • 5 Hide
    yorgos , November 22, 2012 10:57 PM
    I can't stand some things people say.
    First of all noone is going to buy amd. Their gpu division might get sold, their patents on cpus or gpus or everything else that they have innovated might also get sold but NOT amd. who will buy a cpu manufacturer who cannot sell their x86 license. If a company wants to buy AMD then that company has to get the name of AMD for the x86 license to be active.
    Secondly, emirates has a % of amd, they have money to spend and invest and amd has potential.
    i can't continue i got to shit, c ya
  • 4 Hide
    jimmysmitty , November 22, 2012 11:12 PM
    hydac7What ? NO , Come on , stop that , the FX 8350 is good , just bought one last week , come on AMD


    In this market, "good" just doesn't cut it. They need "excellent". The new FX series barley puts it at or above Sandy Bridge, Intels previous gen part.

    They need to make money and to make money they need a product that can sell not only well to consumers but also in the big money markets like servers where they charge much more than $250 for a CPU.

    nforce4maxIf I had the chance I would immediately fire the majority of the VP and other management staff in that company then overhaul it. AMD needs for a time hire a third party to asst in driver development and to change over as much of it cpu/apu manufacturing to TSMC.


    The problem I see with TSMC manufacturing is that TSMC already does it for NVidia and AMDs GPUs. They don't have the best silicone either. Remember the limited availability of both the HD7970/7950 and GTX680?

    As well AMD has no control over the manufacturing side of it so if the process sucks and yields suck, they get the short end of that stick.

    I still think its a mistake for AMD to have spun its fabrication side off since they lose control over their product beyond the design.
  • 1 Hide
    guvnaguy , November 22, 2012 11:45 PM
    Awhile back there was an article on here saying that Apple was planning on moving away from Intel for it's computers. Given how cheap it would be for them, I bet Apple will buy AMD and start designing new processors, working from AMD's existing designs. I say this only because the only way they could compete with Intel in the PC landscape is by reviving AMD and using their existing tech-base. I'm no big fan of Apple, but they did a considerably good job modifying ARM processors for their A6 chip. And besides, AMD already has a lead with graphics performance in it's APUs, even if their raw CPU performance falls short.
  • 2 Hide
    ipwn3r456 , November 22, 2012 11:49 PM
    AMD is actually doing pretty well right now... Their GPU's are great for the price, CPUs are doing better now. Why AMD have to do this?
  • 0 Hide
    jimmysmitty , November 23, 2012 12:59 AM
    guvnaguyAwhile back there was an article on here saying that Apple was planning on moving away from Intel for it's computers. Given how cheap it would be for them, I bet Apple will buy AMD and start designing new processors, working from AMD's existing designs. I say this only because the only way they could compete with Intel in the PC landscape is by reviving AMD and using their existing tech-base. I'm no big fan of Apple, but they did a considerably good job modifying ARM processors for their A6 chip. And besides, AMD already has a lead with graphics performance in it's APUs, even if their raw CPU performance falls short.


    AMD wont be sold to someone like Apple who would only use the designs for their products. AMD needs to be what they are to help compete with Intel.

    ipwn3r456AMD is actually doing pretty well right now... Their GPU's are great for the price, CPUs are doing better now. Why AMD have to do this?


    Because they are bleeding money. They haven't had a winnig design CPU wise and the HD7 series is the firt GPU design that truly has an edge on NVidia. They are not able to make money thus they need to make cuts to cut areas of losses.

    Just like Ford, for example. When they were doing bad, they started making cuts by selling off assets that didn't make them money (like Aston Martin etc) and then restructured and started to pull from their superior European line of cars (2012 Focus, Fiesta and now the 2013 Fusion).

    AMD will survive. Problem I see I that the current CEO will lead them from a competitive company (vs Intel) to a more low end solution instead. Without AMD, I don't think Intel will have the need to innovate.
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