AMD To Slash 10% of Its Workforce, 1400 Jobs
AMD says it’s slashing jobs from all across its global workforce. Due to the redundancies, the company should save $10 million yet in 2011 and $200 million in 2012 in operational savings. AMD plans to reinvest that cash into its low power, emerging markets, and cloud initiatives.The “reorganization” is slated to cost AMD $101 million in 2011 and another $4 million in 2012. Most of those employees are losing their jobs in the fourth quarter of 2011.
In a press release, Rory Read, AMD president and CEO (pictured), said, "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. 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."
It's a dark day for the company and more than a few of the long-time veterans we're close with over there are no longer with AMD. In fact, we've heard from our good friend, Pat Moorehead, Corporate Fellow and CVP in the Strategy Group at AMD, that he has moved on to new opportunities.
We wish the best of luck to Pat and all who are moving on from AMD. AMD's official release can be found here but here's the gist...
Operational Savings of More Than $200 Million in 2012 Designed to Accelerate Future Growth in Lower Power, Emerging Markets and the Cloud
SUNNYVALE, CA, Nov 03, 2011 (MARKETWIRE via COMTEX) --
AMD (NYSE: AMD) today announced a restructuring plan and implementation of operational efficiency initiatives designed to strengthen the company's competitive positioning. AMD expects that these combined actions will create a more competitive cost structure and rebalance the company's global workforce skillsets, helping AMD to continue delivering industry-leading products while improving productivity, reducing time-to-market and better aligning with key industry trends that are expected to drive growth.
"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 Rory Read, AMD president and CEO. "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 expects that the restructuring plan will result in operational savings, primarily in operating expenses, of approximately $10 million in the fourth quarter of 2011 and $118 million in 2012, primarily through a reduction of its global workforce by approximately 10% and the termination of existing contractual commitments. The workforce reduction will occur across all functions globally and is expected to be substantially completed by the end of the first quarter of 2012. Based on anticipated savings from the restructuring plan, AMD expects fourth quarter 2011 operating expenses will be approximately $610 million.
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It's terrible for those who are being laid off (in this economy). The 'haters' will say it was only a matter of time (from a glance at their financials the past few quarters, last quarter aside). I really do hope AMD can turn it around. |
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I feel so bad for the people who are going to get cut and need to support their families. |
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"I can't really call this positive news even if it's meant for the long run. A company like AMD should have been expanding and not laying off jobs. Still, AMD has a lot of life left, hopefully they can sort out the woes and past bad making decisions that have played out to this hopefully ,* short* shortcoming, but off course, how many times have people commented the same things that I've said in this sentence in the last few years. AMD , get your act together, we need competition." |
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We know of some good people that were affected. The good news is, good people are eminently employable. They'll land on their feet and some already have. One of our good AMD friends is at Dell now and I'm sure we'll be seeing others land in good places soon. |
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I hope they all find good places soon. It's terrible to end a year losing your job and even worse start a new year without one... |
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Dislike... But totally agree with Dave good people are typically good employees and are easy to employ. Plus technical people continue to be in demand. |
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If Bulldoser came out being ahead this would of never happened. |
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Not good for everyone but whatever it takes to get AMD back to a lean company that is focused I trust the board. Again Rory Read knows how to set objectives and goals and hit the targets while remaining nimble. The cream always rises to the top and the good employees will bounce back no doubt. |
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So Rory Read's plan finally begins... While I dislike that jobs are getting cut in this harsh market, hopefully their savings should go into things such as an improved version of Bulldozer and the expansion of their APU department... I'm not going to cry foul that it's a bad deal but I will be watching this to see where it goes. |
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This doesn't bode well for AMD no matter how you look at it. I feel bad for the families of the people laid off in this one. |
I honestly think the screwup thing is overrated. I mean Bulldozer didn't perform to expectations but it wasn't completely terrible. In fact those that buy it will be satisfied despite the unfair pricing... People often forget that rumors of an improved Bulldozer are out there and well, if the rumors are true then improved x86 performance should be out and hopefully should be able to match the next generation of Intel CPU's. |
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