Sunday, October 14th 2012
AMD to Slash Nearly a Third of its Workforce
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
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.
52 Comments on AMD to Slash Nearly a Third of its Workforce
And as to the comment about Apple, as has been pointed out again many times here already, no company in this day and age actually aims for a true monopoly as that just leads to hot water with the Feds.
There are many here that think if AMD goes under that Intel will have some kind of Monopoly and that we will be at the mercy of Intel, Well I just don't buy it pall! First off America will step in and break that shit up, second AMD will not go under just like this. They will have to restructure and do some hard changes to turn things around, But AMD will not be going under. And even IF they do so what? some one will buy them up and do what is needed to get there NAME on the MAP!
Look if you want to sell your product to people, Then YOU have to let them people KNOW about it. AMD has just plain failed at doing this. What? AMD doesn't need to advertise? Well just how is any one going to know they are even in the game? It is so stupid and ignorant to think that AMD is just a chip maker than needs not apply! I watch AMD stock go down down down, I watch AMD change there CEO's like that will work. I just do not get it AMD is just stupid! This is there fault for not advertising there product. It is Economics 101 and they for some reason (I DO NOT KNOW WHAT) do not get it! Intel is top dog because I see Intel every PLACE! Wake and Smell the coffee AMD or at least get some one that knows how to make adds for your shit!
I am starting to feel truly disgusted by AMD. Perhaps back to Intel for me.
I'm betting the collapse of AMD isn't going to happen within the next 5 years.
Any takers?
AMD is fine people. This is just trimming the fat. They still have great margins.
Now they just need to hire me for marketing.
Basically anyone in the EU just handed their sovereignty over to Germany in the past 10 years that's doesn't live within their means. They took over Europe without firing a single round. Kudos to the Germans for a take over well done. The one I'm looking forward to is France. They are the next on the short list of economic freeloaders.
Ummmmm
www.forbes.com/sites/afontevecchia/2012/10/09/greek-protesters-welcome-merkel-in-nazi-uniforms-as-the-imf-downgrades-the-world/
So according to Germany austerity is needed if Greece wants to survive. No. AMD still has great margins man. With this trimming of fat it will improve the margins even more.
to pay for everything they will have to lower down their own living standards to help other countries. Germany and the german ppl don't shit gold.
As for Ireland I said they were screwed, unless you meant Iceland, but they are actually doing fine. Their decision to not bail out tons of banks that were considered "too big to fail" has actually helped them quite a bit since their government isn't expanding their debt unnecessarily to reward people who tanked their economy.
Germany is trying to get everyone on the same page and normalize things like retirement age and benefits. Greece was out of control, I will give you that, but that's what happens when your entire bureau on economics is Goldman-Sachs staff members. They had something like a retirement age of 55, guaranteed 4 weeks a year of paid vacation, and pensions for every citizen that paid more than their actual jobs upon retirement--all subsidized by the government. What Germany is requesting is that they adopt the same benefits systems that they have in place, which are still ahead of the United States and most other countries.
As for the Scandanavian countries, their debts never exploded because they never followed the Conservative mantra of cutting taxes and keeping government completely out of peoples lives. Hell, Finland was a flat out Socialist country for decades, and are doing fine these days. By American standards Sweden and Norway are Socialist as well, almost no debt, very effective governments with very generous social programs. Eh, they are in the red about $5b and their stock has dropped from ~$8/share to ~$2.75/share over the past 6 months. That's a pretty troubling turn around...
Scandinavian countries come close to practicing what they call Austrian economics which doesn't rely on the expansion of debt and economy to survive. They keep their debt to GDP very close (very Smart). To them there is no such thing as ANYTHING to big to fail. Their social programs can survive forever because they pay as they go basically. However they are not pure students of Austrian economics as they are not fully backed by gold (which is fine). As long as they keep the benefits in line with their governmental income (taxes and such) they will be fine. Socialism has nothing to do with it. Its about their style of economics. Some in the US begged to bring this style of economy to the US. (Ron Paul) but that means all the pork in the government would have to be cut. Red and Blues can't have the pork cut. Gotta keep borrowing. Gotta keep the masses happy for votes. I NEVER said we are fine. We are gonna collapse and bring most the world with us If we don't cut down on spending.
I mean really you cannot borrow more and more money with no expansion of the economy to cover the interest that debt will bring. Its just common sense.....and before you go and say "Tax the rich more" let me remind you we have some of the highest corporate taxes in the world and if we taxed the "1%" 100% of their income it STILL wouldn't cover our yearly deficit. The US has two very big problems. 1. Less then 50% of the nation pays into the government. The "Middle Class" pays zip currently because our economy isn't expanding (Thank you progressive taxes and Keynesian economics). They rich pay the bulk of all taxes and the government cannot tax them anymore or they will start moving off shore (Wouldn't you?). Lose them and the economy crashes. 2. The government spends WAY to much money on crap. They know they cannot raise enough taxes to sustain its size so they keep borrowing and 1% economic growth per year combined with WAY LESS then 250,000 new jobs per month (needed to sustain our economy) just means the debt will keep going up until we are devalued again. This isn't a Conservative or liberal narrative. This is just simple economics. Germany knows this and its why its telling these nations to get their spending in line with its income. You can have all the social spending in the world if you want....as long as your economy can support it without a massive yearly deficit.
Also you cannot measure a company purely on stock value. Granted its can be an indicator of SOME things but not the over all health. They (AMD) have been much lower then 2.75 in the past. In 2008 they dropped to 1.82 and are still here today. What you need to look at is margins. As long as AMD is making money they will be around. This big cut in personal will mean bigger margins in the end.
Educated on the economies of nations he has never been to.
Cloud computing, cancellation of Terramar Chip, SeaMicro acquisition, APU, HSA, Project Sumatra, etc..
AMD is gambling their future on something that actually may be a winner strategy(or not), they are trimming their organization to allow them to live from their 5-6% their share of global server market while they venture to an area without real competitor.