AMD will lay off 15 percent of its workforce to cut costs

Published:2012/10/18 21:45:00 Author:Ecco From:SeekIC

According to AMD executives, Advanced Micro Devices, staggered by a weak global consumer demand and strategic missteps, will lay off 15 percent of its workforce to cut costs while launching an aggressive push into embedded markets to counter declining PC sales that will continue "for the foreseeable future".

It is reported that AMD sales dropped 10 percent sequentially to $1.27 billion in the third quarter, or $157 million. AMD executives had previously expected Q3 sales to be between and $1.38 billion and $1.4 billion, a range of 1 percent to down 3 percent sequentially.

The company said that the roughly 1,700 layoffs will save AMD $20 million during the fourth quarter and $190 million in 2013. The cuts reduce AMD expenses by 25 percent. "We are resetting to a new business model to deliver break-even results with $1.3 billion quarerly revenue" by this time next year, CEO Rory Read said, reading from a prepared statement.

Reprinted Url Of This Article: http://www.seekic.com/blog/IndustryNews/2012/10/18/AMD_will_lay_off_15_percent_of_its_workforce_to_cut_costs.html

Print this Page | Comments | Reading(11662)