Possible layoffs expected at AMD
As we have reported several times, AMD has been struggling with losses for the last five quarters that need to be offset. The share of the hotly contested processor market is also slowly crumbling. So it is not surprising that drastic measures on the part of AMD are expected at tomorrow's analyst conference.
The current turnover of 508 million dollars is nowhere near enough to return to profitability. The 600 million dollars expected for the next quarter are still a good 150 million dollars too little to cover AMD's cost structure, for which a good 750 to 850 million dollars are needed. One reason is probably the delay in the Clawhammer, which was scheduled for September but has now been postponed until next year. Intel is also putting pressure on it, so AMD's competitor keeps lowering prices, which puts AMD under pressure. In order to finally get back on track, CFO Robert J. Rivet has already announced aggressive actions and accelerated measures. Tomorrow it will be announced exactly which actions will be. One of the planned actions could mean reducing the current 13,000 employees by 10 to 20 percent. Of the formerly over 15,000 employees, AMD had already had to cut over 2,000 jobs in the last twelve months. Analysts assume that it will hit the administration and management first.