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Big Layoffs Expected at AMD

Last Thursday, AMD projected a 10% sequential revenue decline in Q3, up from guidance of 1%-3%
By Maureen O'Gara
Article Rating:
October 15, 2012 01:36 PM EDT
Reads:
 2,703

AMD is going to make "significant" layoffs, possibly amounting to 10%-20% of the company's workforce, according to what the Wall Street Journal called "a person familiar with the situation."

All Things Digital puts the number closer to 30%.

The Journal suspects that the company, which has already cut into marketing and such, may have to decimate engineering, including its server chip unit.

Last Thursday, AMD projected a 10% sequential revenue decline in Q3, up from guidance of 1%-3%, and lowered its gross margin guidance from 44% to 31%.

It reports its Q3 results on October 18.

Intel, which also guided down after a quarter cannibalized by tablets and smartphones, reports on October 16.

Gartner and IDC said last week that the PC market was down 8%-9% in Q3.

AMD reportedly had 11,700 people at the end of Q2.

Published October 15, 2012 – Reads 2,703
Copyright © 2012 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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