AMD layoffs confirmed: 15 percent of workforce getting axed
updated 05:29 pm EDT, Thu October 18, 2012
Move expected to stem the tide of red ink from economy, tablets
As previously rumored, AMD has said that it is planning on cutting its workforce by 15 percent in an attempt to pare operating expenses. The current round of layoffs are the second in less than a year as the industry purchasing trends shifts away from computers and towards tablets. The chip manufacturer expects the restructuring and site consolidation will result in a savings of $190 million next year.
AMD posted third-quarter revenue of $1.27 billion, down from $1.69 billion a year ago. Analysts had expected revenue of $1.28 billion. The quarterly losses posted at $157 million, as opposed to a profit a year ago of $97 million.
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."
