AMD to drop 30 percent workforce next week

Advanced Micro Devices, or AMD, is the second largest desktop and laptop computer processor manufacturer in the world (as there are just one other company except AMD, which is Intel). AMD has been facing low sales right from the end of last year. Intel has been busy working out ways in which it can enhance its Core i series of processors, and has released the third generation Core i processors, known as the Ivy Bridge series.

AMD, on the other hand, did try a lot to release and offer the best performance processors, but has not been so successful. Intel has been a good competitor in that regard. AMD had announced at the end of last year that it would be eliminating around 10 per cent of its work force in the beginning of this year, and that was due to low sales of the company’s products. Since then, the employees of the company have been going to their work every day with the fear of getting fired.

AMD has again decided to cut the workforce by 20 per cent to 30 per cent in the coming couple of weeks as its sales have not shown any improvement. Slash Gear writes:

An unidentified source “familiar with the company’s plans” told AllThingsD that AMD plans to announce workforce cuts between 20% and 30% next week, which would total about 2,200 to 3,300 jobs. The jobs in danger involve sales and engineering, and the anticipated cuts may result in AMD reducing its overall offerings. The first round of cuts at the beginning of the year reduced AMD’s operating expenses by $118 million, yet a bad economy and poor sales have prevented it from rebounding.

Sources say that the official announcement could come on October 18th, when AMD announces its quarterly data, or it could be on October 25th. According to one of the sources, the cuts may be completed, or close to completion, by the 25th. The exact time frame for the announcement is unknown, but is expected to be in the next two weeks.

Source: Slash Gear

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