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AMD to Slash Nearly a Third of its Workforce

Discussion in 'News' started by btarunr, Oct 15, 2012.

  1. btarunr

    btarunr Editor & Senior Moderator Staff Member

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    AMD is reportedly working to cut its workforce by nearly a third, about 20 to 30 percent, according to sources who spoke with All Things D. That's anywhere between 2,200 to 3,300 jobs. The sources say the cuts could affect employees in engineering and sales, departments that have been spared in previous rounds of cuts. The cuts will be deep enough to show that AMD is scaling back its product offerings. It's likely that the cuts could be announced along with the company's quarterly results due on October 18.

    AMD CEO Rory Read is said to have assembled a team of business consultants from McKinsey & Company and BCG to guide the company through the process. McKinsey's will handle the job cuts, while BCG will be consulting on a "grand strategy" that could take the company forward.

    Source: All Things D
     
  2. HumanSmoke

    HumanSmoke

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    Hopefully the first names on McKinsey & Company and BCG's kill list are AMD's board members.

    Robert Palmer- director since 1999*
    Bruce Clafin- director since 2003
    W.Michael Barnes - director since 2003*
    H.Paulett Eberhart- director since 2004
    John Caldwell- director since 2006

    * Two of the three directors that make up the Audit and Finance Committee.

    Thanks guys- take a well earned rest.
     
  3. cadaveca

    cadaveca My name is Dave

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    Do you work for AMD? :p

    or perhaps...did you?


    :roll:
     
  4. symmetrical New Member

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    Just in time for the Holidays
     
  5. entropy13

    entropy13

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    Engineering and Sales? Shouldn't it be Management and Sales?

    And talking about Engineering, it's apparently not the CPU division but the Graphics division...
     
  6. suraswami

    suraswami

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    This is sad.
     
  7. 1d10t

    1d10t

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    yeah...and let chuck norris lead engineering and PSY gangnam for marketing :rockout:
     
  8. HumanSmoke

    HumanSmoke

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    Nope, but I'm a firm believer in the proverb "A Fish rots from the head"

    AMD and their loyal followers have made an art form out of blaming outgoing executives for their woes (when they aren't playing the beat-down underdog vs Goliath card). Without exception, every CEO, and many of the other top management have been hired by the board. The board also dictate the company's governance and direction.

    Rory Read memo to all AMD staff as publicized by S|A (see their front page)

    If buzz words and marketing pap were dollar bills, AMD would be bigger than Wal-Mart and IBM combined.
     
  9. trickson

    trickson OH, I have such a headache

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    WOW! This is just too much. First there video card company now this. Looks like AMD is sinking faster than the Titanic! What happened? Is this really a reflection of there Phenom and BD? This could really cripple AMD. BAD Just BAD news!
     
  10. cadaveca

    cadaveca My name is Dave

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    Meh. I thinmk AMD needs to go down to 25 staff.


    Yes, just 25. They are, after all, just a small engineering firm, and nothing else now.


    Not that I want peopel to lose their job..that sucks, but if AMD is to last long-term, some drastic changes have to take place, and I dunno that the board of directors needs the axing...are they even paid? I mean, if they are, then perhaps, but they should fire whoever made the choice for spending money to hire someone to figure out who needs to go...
     
  11. Steevo

    Steevo

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    AMD was taking a wrong turn years ago. I think they are just too stupid and proud to turn around.


    Wonder who they are selling out to? Samsung? Nvidia? Nvidia could spare to spend a few hundred million fighting Intel for the patent rights, or just threatening to pull the X64 cross license if they bought AMD/ATI.
     
    10 Million points folded for TPU
  12. HumanSmoke

    HumanSmoke

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    Everyone keeps saying that x86 is dead. Add in that anyone buying AMD (assuming that the x86, x86-64 cross licence is transferable) would be faced with the same problem that AMD has- namely having to arm wrestle Intel. Might be ok for a cash rich company- but most of those seem to be either heading the ARM way (Apple, Nvidia for example), or might run headlong into the U.S. Govt. who I doubt would willingly allow AMD's IP go offshore (ATIC/Mubadala). When Rory was hired, I had the strong suspicion that he would be Mubadala's stalking horse- systematically disassembling AMD until the price was right for Abu Dhabi to step in. It would be somewhat ironic if AMD ended up as a division of Globalfoundries.
    AMD could conceiveably just limp along, divesting itself of market presence and selling IP as they go. They could do OK just working in the APU/console space (as a small company), with maybe the Radeon division spun off with part ownership going to another company. You'd think that AMD would need some ownership in the graphics company for the development of APU's and consoles.

    In the end, AMD wont go to the wall. The FTC wouldn't allow Intel to have a complete monopoly....maybe Intel buys a few million AMD chips just to keep them afloat - don't know what they'd do with them...send them straight to China for recycling?...use them to tile the urinals in the executive washrooms at Santa Clara? (might put a smile on Otellini's face)
     
    Last edited: Oct 15, 2012
  13. ensabrenoir

    ensabrenoir

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    need an asprin.... maybe i should grab some high end gpus before they fade away......:shadedshu
     
  14. xenocide

    xenocide

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    ARM has its benefits and its drawbacks, there's a reason it hasn't exploded in desktop settings--it's just not as powerful when scaled up. Keep in mind that Intel is just getting into the mobile world, they released an x86-based mobile CPU that gets battery life on par for ARM chips, and outperforms all but the bleeding edge of ARM CPU's, and that was their first try. Give them another 2-3 years and I would not be surprised to see Intel producing the most powerful and power-efficient mobile CPU's on the market, and they will be x86.

    As for another company buying them out, who do you think people recognize more; AMD or IBM? What about between AMD and Samsung? AMD does not have name recognition, and that's part of why they don't make any headway against Intel. I would venture as far as to say more people probably know of companies like Qualcomm than AMD. If a larger company--preferably one with manufacturing capabilities--buys out AMD, it would probably help them quite a bit.

    The rumor is that most of the cuts are to the Graphics Division, and that is horribly irresponsible on AMD's behalf, because the Graphics Division has been doing excellent (especially by comparison) while the CPU division is just bleeding dry. I would love to see another competitor in the GPU or CPU market, but it's just not likely all things considered.

    It's possible Intel could invest in AMD, the same way Microsoft invested in Apple when they were on the verge of failing. An Intel monopoly would not lead to a technology standoff, but it would probably hurt Intel more than anyone.
     
  15. cdawall where the hell are my stars

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    I could see this happening as well...A lot of members have brought it up. Intel monopoly would lead to many bad things.
     
  16. suraswami

    suraswami

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    I hope whoever is the chief BULLDOZER designer should be fired and he should have a permanent tatoo on his forehead saying 'I designed BullDozer and I Suck!'

    Only when they throw away the stupid high frequency BD design and come up with a new smart more IPC, low ghz and low power consumption they can even do something to the company.
     
  17. xenocide

    xenocide

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    How so? Intel couldn't really sit around without inovating since it would cause a lot of people to just stop buying CPU's. They are driven by demand from companies that rely on computers (Music Production, Web Servers, Movie Rendering, etc.) more than average people. Almost everyone could get by with a mediocre dual or quad core these days, it's the people that need more power that drive Intel to offer better CPU's. If these people had no reason to upgrade Intel would lose a ton of money.

    This would also lead to ARM actually seeming viable since it would be Intel sitting around doing nothing while ARM had time to develop valid desktop CPU's.
     
  18. HumanSmoke

    HumanSmoke

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    So that would be 11 board members and 14 other personnel...sounds like a recipe for success!
    Well, Clafin got $727,000 in cash+stock in 2009 and most of the others picked up a quarter million apiece according to SEC filings...not bad for running a company into the ground.
    That would be the Board of Directors. Who else would be determining company strategy?
    How about the bright spark that thought selling off the handheld graphics IP for peanuts was a good idea?
     
    Last edited: Oct 15, 2012
  19. cdawall where the hell are my stars

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    en.wikipedia.org/wiki/United_States_antitrust_law

    I said it in another thread AMD is to big to fail. Soon it will be like GM (Government Motors) with its new name Americuh! Micro Devices.
     
  20. Depth

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    Damn, I hope they stay in the game. I do prefer nVidia and Intel over AMD/ATI but they NEED a competitor to avoid the kind of monopoly Apple is aiming for.

    Nobody could ever come out of nowhere and instantly stand up to nVidia.
     
  21. NC37

    NC37

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    Oppa AMD STYLE!!!

    HEEEEEEYYYYY SEXY CLOCKING!!!

    Ya know that would totally sell. AMD hurry up and sign PSY on for your next marketing stunt! Might actually sell people on the insane overclock hype!
     
  22. Oblivion-330

    Oblivion-330

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    Without competition they can charge whatever they want for their product.
     
  23. de.das.dude

    de.das.dude Pro Indian Modder

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    hopefully they will be sackign the whole marketing dept.
     
  24. micropage7

    micropage7

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    i hope with that AMD would be a better competitor to Intel, maybe they need more efficient and more productive than now
     
  25. de.das.dude

    de.das.dude Pro Indian Modder

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    looking at the current situation, i hope they will be able to stay in the market. leave alone, trying match intel.

    sacking 1/3 employees means they are really broke.
     

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