AMD Mulls Massive 10% to 30% Layoffs

AMD Plans to Reduce Headcount Once Again

by Anton Shilov
10/15/2012 | 08:40 PM

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.