Breaking: AMD to layoff 5% of its workforce, says The Inq

Discussion in 'Graphics and Semiconductor Industry' started by B3D News, Mar 19, 2008.

  1. B3D News

    B3D News Beyond3D News
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    According to The Inquirer, AMD employees have been informed that 5% of the workforce is being cut across all segments of the company. Rumours seem to indicate an upcoming quarterly earnings miss is responsible for the move; AMD's fiscal Q1 ends on March 31st and results are announced in mid-April.

    Read the full news item
     
  2. ShaidarHaran

    ShaidarHaran hardware monkey
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    I hope they don't miss earnings, if their stock goes any lower they won't be able to service their debts.
     
  3. Arun

    Arun Unknown.
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    Being able to service your debts doesn't have much to do with their stock price; however, if they underdeliver once again they risk not being able to obtain new capital through either the stock market or the credit market, and that's much more problematic.
     
  4. MTd2

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    AMD doesn't have the vast number of employees as Intel, so wouldn't laying off too many d cause an even worse efficency?
     
  5. ShaidarHaran

    ShaidarHaran hardware monkey
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    I didn't mean it would be an immediate effect, more of a mid-term effect that could eventually lead to bankruptcy.
     
  6. Scott_Arm

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    This really sucks. I feel terrible for those 5%. I've been through a huge merger was lucky enough to escape the downsizing.
     
  7. Twinkie

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    Another day of "Survivor: AMD."

    This is bad news. 5% is a massive number. Sometimes downsizing is good, but with current trend of things going on for AMD, this is in no way a good thing.
     
  8. MTd2

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  9. 3dilettante

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    I think anything anyone at AMD says should be parsed very carefuly.

    Perhaps it is true that they did not have a workforce reduction, but that just means the pink slips, if there are any, may not have made it to their recipients yet. There are a number of other tenses missing from that statement.
    Perhaps the rumor mill picked up chatter of plans for a reduction, rather than one that is ongoing.
     
  10. ShaidarHaran

    ShaidarHaran hardware monkey
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    this is why the rumor mill sucks

    I just hope everything is alright

    I now have a distinct feeling this is FUD, however - probably meant to counter AMD's recent success in the graphics division (relatively-speaking).
     
  11. digitalwanderer

    digitalwanderer Dangerously Mirthful
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    Well I sure hope it's just a false rumor. :)
     
  12. Tchock

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    Fudo says 10%.

    So this should probably be true (2 sources, 3 and we can probably triangulate :p). Whether it be big or bigger, this doesn't bode too well for AMD in the long-term.
     
  13. ShaidarHaran

    ShaidarHaran hardware monkey
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    When is Fuad Abazovic a reliable source of information?
     
  14. Arun

    Arun Unknown.
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    His track record for management-level AMD rumours has been pretty good in the last year or so, sadly... Here's hoping he's wrong this time though. I don't even want to start pondering how bad Q1 must be financially if they're considering 10% cuts.
     
  15. _xxx_

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    I say at least 10%. Based on no facts, just my gut feeling.
     
  16. MTd2

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    The top executives who confirmed the layoffs included Dirk Meyer, President and Chief Operating Officer of AMD; Mario Rivas, Executive Vice President, Computing Products Group at AMD; Jay Nunez, VP of North America; Mark Jones, Rueven Soraya, Director Chipset Business; and Larry McIntosh, who is the Director of North America Channel Sales at AMD.

    http://www.fudzilla.com/index.php?option=com_content&task=view&id=6611&Itemid=35
     
  17. Scott_Arm

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    I'm feeling for those people at AMD. I've experienced the dark layoff cloud. Never got axed, but the uncertainty definitely makes it miserable to go to work some days.
     
  18. digitalwanderer

    digitalwanderer Dangerously Mirthful
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    Well that latest Fudzilla piece seems to make it look all real and scary to me. :(

    May none of my friends at AMD be affected by this, please. :???:
     
  19. ShaidarHaran

    ShaidarHaran hardware monkey
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    Start at the top and get rid of Ruiz.
     
  20. Arun

    Arun Unknown.
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    In the unlikely event that the firing is semi-random (ugh), I would suggest that they should run the random selection process as many times as necessary to fire Ruiz.
     
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