AMD to divert resources to lower power, emerging markets, and the cloud.
As one of the first big moves after Rory Read assumed the role of AMD president and CEO, the company today announced a restructuring and cost-cutting plan designed to strengthen the company's competitive positioning.
"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 Read. "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."
AMD will be cutting its global workforce by approximately 10 percent and terminating existing contractual commitments. AMD expects that the restructuring plan will result operational savings, primarily in operating expense, of approximately $10 million in the fourth quarter of 2011 and $118 million in 2012. Based on anticipated savings from the restructuring plan, AMD expects fourth quarter 2011 operating expenses will be approximately $610 million.
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.
AMD says it expects to reinvest a significant portion of the savings to fund initiatives designed to accelerate the company's strategies for lower power, emerging markets, and the cloud.
RIP
RIP
Doesn't necessarily mean that the company is in trouble, restructurings can happen without problems, i think this is a good move, it'll help with the research and development costs to get the extra edge against intel whose budget is a behemoth compared to AMD
You might have missed the memo, but that happened 4 years ago.
I wouldn't read too much into this PR other than Read is trying to convince Wall Street that good things lay ahead for AMD financially, which bumps share price and executive stock value.
The doomsayers can relax as AMD isn't going anywhere and will continue to deliver the products that consumers desire.
Yeah, AMD is going to be fine even if they aren't focusing their energies in the direction you or I would like. They've been making the best integrated graphics solution for a couple of years now and that's a big deal for OEMs.
Pretty fail IMO but what did they expect that people would just buy them anyway even if they suck? In today's internet savvy market inferior products don't have a chance. In the past you could mask the fail with really good marketing strategies but that just doesn't cut it anymore. Especially in electronics, people are in most cases just way too well informed to fall for it and there aren't enough fan-boys to keep a company that size afloat by themselves.
besides the p4 era, were they ever in the high performance area? i thought they were always a decent alternative area and good low cost.
and again, i say wait till windows 8 and revision 1 of bulldozer to pass judgement. because it will be what, a year, year and a half till intel ships its new design, i cant see ivy bridge doing much besides saving power and gaining 5-10% performance boost.