Rumor: Major Layoffs at AMD Expected Next Week
Advanced Micro Devices Inc (AMD) could cut up to a fifth of its staff of nearly 12,000, following a warning from the chipmaker this week that its quarterly revenue would fall due to a weak global economy, a source familiar with the matter recently stated. The source, who asked not to be identified, told Reuters the company's second round of big layoffs in a year would be close to a range of 10 percent to 20 percent. People believe the cuts could take place next week and that they could include so many employees from engineering and sales that it may require AMD to scale back some products. AMD declined to comment.
AMD and Intel have been slow to adapt their PC chip designs to mobile. But while Intel has poured its massive resources into efforts to catch up to smartphone chipmakers like Qualcomm, AMD has yet to define a clear mobile strategy. Last year, the company appointed a new Chief Executive Office, Rory Read, and one of his first major moves was to announce a plan in November to slash 10 percent of its workforce to save about $200 million in operating costs.
Posted by | Tue, Oct 16, 2012 - 03:15 PM