AMD lays off 500
The move follows a 1,650 employee reduction announce in April that saw approximately 10% of the MPU maker's staff let go and is part of AMD's larger effort to reduce its breakeven to $1.5 billion a quarter.
By Suzanne Deffree, Managing Editor, News -- EDN, November 6, 2008
Advanced Micro Devices Inc this morning confirmed 500 job cuts across its global operations as part of its larger effort to reduce the company's breakeven to $1.5 billion a quarter.
The move follows a 1,650 employee reduction announced in April that saw approximately 10% of the MPU maker's staff let go.
The 500 employee layoff also follows on early October announcement from AMD that it would spin out its manufacturing operations into a separate company. That effort will move approximately 3,000 positions, as well as significant debt and expenses, to "The Foundry Company," once it is fully established.
Also, AMD announce in August that it would sell its digital TV business to Broadcom Corp, skimming another 530 employees from its ranks. That sale was concluded last week for approximately $50 million less than the original $191 million purchase price.
AMD makes the restructuring moves as it struggles to regain its financial footing. While its September quarter revenues and gross margin did show improvement, the Q3 results were still marked by continuing losses and an increasingly harsh economic climate, which painted a "murky" picture for the company's Q4, according to CEO Dirk Meyer.
AMD said the 500 position cuts are not limited to a single level or part of the company.
The company did not provide guidance on how much this specific action would save and said that any charge incurred by the layoffs will come in Q4.
AMD notified the majority of the impacted employees yesterday.
AMD had approximately 16,500 employees spread across 80 global locations before the restructuring changes.
