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Advanced Micro Devices is set to continue its restructuring efforts in the coming year, which will include further layoffs. Even though they are not projected to be significant, their incoming lowers the state of employee morale and encourages many old workers to leave AMD for other companies.

“All the old AMD street-fighters are gone, and a lot of them feel that Rory has made a big mistake in getting rid of them. Without them, people feel like they’re in a losing battle,” a source with knowledge of AMD’s situation told AllThingsD web-site.

AMD plans to lay off 15% of its workforce, or around 1700, this quarter to reduce operating costs so to reach $1.3 billion break-even point in 2013. Apparently, AMD will not stop here and will continue to reduce its headcount to reduce its costs. Unfortunately, AMD still does not know how many people will need to be shown the door. What should be noted is that AMD managers are waiting to see how many more people quit on their own accord between now and January – and thus do not require expensive severance packages.

 

“As we communicated during our third quarter earnings results, we expect to take further restructuring actions in the first half of 2013. At that time, we did not know what specifically they would consist of or if they would be material. We have not provided any updates since then and do not comment on rumor or speculation,” a statement by AMD reads.

Even though AMD will clearly lower its operating costs by reducing the headcount of its employees, without talented engineers, developers or sales people, the company will be unable to design competitive products or efficiently sell them. At the end, the firm will be even less competitive against Intel, Nvidia or other than it is today.

Tags: AMD, ATI, Business

Discussion

Comments currently: 20
Discussion started: 11/20/12 01:42:52 AM
Latest comment: 11/22/12 06:58:36 AM
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1. 
j7's hate post in 3...2...1...
5 2 [Posted by: Nightgawk  | Date: 11/20/12 01:42:52 AM]
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1 13 [Posted by: j7  | Date: 11/20/12 03:28:45 AM]
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5 12 [Posted by: linuxlowdown  | Date: 11/20/12 07:37:39 AM]
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I actually feel bad for him. He probably has no friends and I bet his parents neglected him in early childhood. To create some meaning in his life, he decided to dedicate himself to anti-AMD propaganda. The irony is if AMD fails, he will have to find a new target to hate or once again he will feel empty inside.
5 6 [Posted by: BestJinjo  | Date: 11/20/12 10:58:32 AM]
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Actually, he may just be one of the forum mods. The posts sure draw attention, don't they?
3 3 [Posted by: Nightgawk  | Date: 11/21/12 12:00:51 AM]
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2. 
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1 5 [Posted by: AvONbaCK  | Date: 11/20/12 02:02:13 AM]
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1 9 [Posted by: j7  | Date: 11/20/12 03:31:49 AM]
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5 11 [Posted by: linuxlowdown  | Date: 11/20/12 05:56:55 AM]
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1 4 [Posted by: AvONbaCK  | Date: 11/21/12 03:50:04 AM]
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The board of directors should be taking pay-cuts instead of firing engineers and people who actually work on the products. It wasn't just RR that brought AMD to where it is today. The incompetent BoD has been destroying this company slowly for more than half a decade.
3 5 [Posted by: BestJinjo  | Date: 11/20/12 11:13:17 AM]
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1 5 [Posted by: AvONbaCK  | Date: 11/20/12 12:04:50 PM]
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1 5 [Posted by: j7  | Date: 11/20/12 12:05:31 PM]
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1 5 [Posted by: AvONbaCK  | Date: 11/20/12 12:11:11 PM]
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3. 
They are definitely slimming down for a sale. Wonder who is going to buy AMD?
6 1 [Posted by: Memristor  | Date: 11/20/12 04:15:57 AM]
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1 7 [Posted by: AvONbaCK  | Date: 11/20/12 06:22:03 AM]
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4 14 [Posted by: linuxlowdown  | Date: 11/20/12 07:27:42 AM]
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1 4 [Posted by: PnoyP  | Date: 11/21/12 08:54:48 PM]
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0 3 [Posted by: AvONbaCK  | Date: 11/22/12 05:25:10 AM]
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i how much more idiots they are!!! i just want to STRESS how much of a moron they are!
1 3 [Posted by: PnoyP  | Date: 11/22/12 06:58:36 AM]
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4. 
Let's hope that AMD will survive the next two years, and that the laid off employees found good jobs else where. It would be said to see all the talents wasted otherwise.
6 1 [Posted by: gamoniac  | Date: 11/20/12 01:03:34 PM]
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