Printed from http://www.electronista.com

Report: AMD plans layoffs of 10-30 percent of its workforce

updated 12:02 am EDT, Sun October 14, 2012

Dismal quarterly results likely to blame; no rapid recovery expected

According to sources familiar with the matter, chip manufacturer Advanced Micro Devices (AMD) plans to cut as many as 2,340 jobs. The firings are expected to be announced as soon as next week, and are reported to come from employees in the engineering and sales departments of the chip designer.

Wedbush Securities analyst believes that "with PC demand being so weak, we don't think the company has any choice but to do some considerable cost-cutting measures." Rumored cuts of between 10 and 30 percent are "aligned with what we were hearing from our industry checks as well."

AMD's third quarter reports were sub-par, which are the likely source of the layoffs. It announced that its revenue would drop about 10 percent year-over-quarter, as opposed to a decrease of four percent to a gain of two percent as predicted. AMD's numbers are blamed on a failure to produce enough chips to meet demand for some time in 2011, as well as an overall weak economy.

Bernstein analyst Stacy Rasgon compared AMD's decline as "watching a slow-motion train wreck." He added that "AMD remains a fundamentally risky choice in our view, and given several ugly quarters, shares are likely to be dead money for some time."



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Razer Taipan mouse

The list of gaming devices is growing larger with each passing day. A large number of companies have entered the gaming input arena, a ...

Cambridge Audio DacMagic XS

Every computer with a microphone or headphone port has one -- a digital to analog converter (DAC). There are nearly as many chipsets a ...

D-Link Wi-Fi Smart Plug

Home automation fans have been getting their fair share of gadgets and accessories in the last few years. Starting with light bulbs, a ...

Sponsor

toggle

Most Commented

 
toggle

Popular News