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As demand for personal computers is dropping, Advanced Micro Devices, the world's second largest supplier of PC microprocessors, is mulling another round of massive layoffs. According to multiple reports, in a bid to cut-down costs, AMD intends to reduce its headcount by 10% to 30%.

Bloomberg news-agency reports that at least 10% of AMD’s staff of about 11700 will be affected, moreover, a source with knowledge of the matter noted that AMD's grand plan is to cut as many as 2340 jobs, or about 20%. AllThingsD web-site claims that AMD may go even further and reduce its headcount by 3300, or around 30%.

In case the information about the layoffs is correct, this would be the second time in about a year for  Rory Read's management team to perform significant reductions in workforce. Last year AMD fired numerous PR and marketing staff members, this time it is reported that workers in engineering and sales will also be affected. The latter may have drastic consequences for the company, which has suffered in the recent years as numerous high-profile engineers left AMD. One source described the mood within AMD as grim. Employees have been expecting the cuts for some time and some things are simply not done.

“There are a lot of nervous people, and not a lot is getting done right now,” the source said.

PC market in the third quarter shrunk by as much as 8.3% year-over-year, according to Gartner. Sales of Advanced Micro Devices contracted by around 10%.

AMD did not comment on the news-story, but considering the amount of reports about layoffs, there is something in development.

Tags: AMD, Business, ATI

Discussion

Comments currently: 12
Discussion started: 10/16/12 12:16:21 AM
Latest comment: 10/18/12 06:01:17 PM
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This downturn should give Read the opportunity to start molding the company for the future, beginning with shedding some of its old skin. AMD would do better to concentrate on 2 handfuls of top products with fewer employees rather than 2 dozen ordinary ones with one or two standouts. With this, AMD needs to create a stronger product brand in the market place, starting with an updated logo with a change of colours from green, black and white to red, black and aluminium silver (besides being tasteful, Chinese identify strongly with the colour red - AMD's largest single market). But of course, branding is only superficial without the clockwork execution required in this high stakes sector. By producing fewer products, AMD can also better manage their inventory. AMD really needs to seize the day at this point or else fear a seize up that only the most ardent deep pocketed Intel fanboy would seriously wish to see.
1 2 [Posted by: linuxlowdown  | Date: 10/16/12 12:16:21 AM]
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AMD uses red a lot for it's product labels (it's mainly red) combined with black, it uses Aluminum silver a lot too
1 0 [Posted by: madooo12  | Date: 10/16/12 10:49:20 AM]
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You say lay offs are a good thing for a company. Lay offs is a bad thing for a company. What AMD is laying off is sales and engineering. Engineers at AMD is the creators of AMD's products, so this is a big blow for AMD. This is like a team losing their players and they get closer to forfeit the game.

FYI, overall Intel setups are cheaper than AMD these days. The comparison of performance of AMD and Intel is that Intel is better. Also the power consumption efficiency is better with Intel. In this case, Intel setups are cheaper compared to AMD. Sure you can compare the total cost of Intel and AMD which will be about $100 cheaper. The Intel system will be cheaper overall when considering the performance and power consumption efficiency.

I recently bought or built a computer. I selected an Intel processor (i3-3225). I did consider AMD, but AMD lacks performance and power consumption efficiency is poor. I did the math and an Intel system is cheaper overall. I have to get deep pockets to get a AMD system with the same caliber as the processor that I picked for my build. An FM2 processor is expensive because have to include at least DDR3-1866 memory.

I use Linux on a daily basis and I rarely use OpenGL apps. If I am going to play games under Linux, I will get a nVidia graphics card.
0 1 [Posted by: tecknurd  | Date: 10/16/12 08:27:55 PM]
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"Thanks" to Papermaster, AMD is going to extensive usage of automatic design software, AMD doesn't simply need so much engineers, but she very needs brains.
Yes, cheap Pentiums (not speeking even of i3)+ cheap dGPU is a better option for gamers than APU. Quite strange that every review site omitted that kind of comparison. It's very suspicious.
1 1 [Posted by: Azazel  | Date: 10/16/12 09:33:46 PM]
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You're really a nurd ... but malinformed nerd, or you just like to sound wiser.

With DAMN cpu that have DDR3 controller all the FX (BD), A/E/Z/Fusion and even old Phenom (K10.5) you can use whatever speed of ddr3 memory you have and that DDR3-.1866 label is just OFFICIALY MAX MEMORY SPEED that is SUPPORTED ... That doesnt mean that you couldnt use lower binned memory modules or even OC your memory ... you could do whatever youer heart is pleased.

And dont say nonsensenses that A10-5800K which is 120USD is pricy CPU over that i3-3225 you mentioned. Thats hillbilly lie.

With A10 you get good GPU which might be not yet supported by the latest linux drivers while with intel you get crippled dual core cpu that is lower power because of 22nm node but thats intel.

You certainly wont cry if damn goes to hell and intel monopolies the prices like they do with processors that are cheaper to produce and have higher price than AMD while many of them offers less performance but also consume less.

Let be honest if you have one desktop where CPU is mostly idling damns fusion is better at this, if you do cpu intensive task intel is better and if you do something that can benefit from gpu damns again better. And damn cpu if not oced consumes max 100W that doesnt mean that you couldnt undervolt them. while lets intel consumes less than declared 65W .... thats only cutdown CPU consumption in half but does that really maters if you have desktop that consumes 150W over one that consumes 100W in max load while most of time only thing that wastes power is HDD and power supply itself.
0 0 [Posted by: OmegaHuman  | Date: 10/18/12 06:01:17 PM]
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2. 
show the post
0 4 [Posted by: calzahe  | Date: 10/16/12 12:24:49 AM]
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I've had a bad day and needed a laugh. Thank you.
0 0 [Posted by: daneren2005  | Date: 10/16/12 04:25:08 PM]
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3. 
A year ago we heard about 10% staff cut, but according to the last SEC filing (as of Q2-2012) AMD had 11,737 employees. We see that there was no cut at all.
11737 is a way to much for not big chip fabless firm.
3 2 [Posted by: Azazel  | Date: 10/16/12 01:30:42 AM]
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yes I remember that, so it didn't happen?
0 2 [Posted by: madooo12  | Date: 10/16/12 10:46:43 AM]
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According to SEC, it looks like.
0 1 [Posted by: Azazel  | Date: 10/16/12 09:28:06 PM]
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