toggle

AAPL Stock: 121.3 ( -1.07 )

Printed from http://www.macnn.com

Report: AMD plans layoffs of 10-30 percent of its workforce

updated 12:02 am EDT, Sun October 14, 2012

Dismal quarterly results likely to blame; no rapid recovery expected

According to sources familiar with the matter, chip manufacturer Advanced Micro Devices (AMD) plans to cut as many as 2,340 jobs. The firings are expected to be announced as soon as next week, and are reported to come from employees in the engineering and sales departments of the chip designer.

Wedbush Securities analyst believes that "with PC demand being so weak, we don't think the company has any choice but to do some considerable cost-cutting measures." Rumored cuts of between 10 and 30 percent are "aligned with what we were hearing from our industry checks as well."

AMD's third quarter reports were sub-par, which are the likely source of the layoffs. It announced that its revenue would drop about 10 percent year-over-quarter, as opposed to a decrease of four percent to a gain of two percent as predicted. AMD's numbers are blamed on a failure to produce enough chips to meet demand for some time in 2011, as well as an overall weak economy.

Bernstein analyst Stacy Rasgon compared AMD's decline as "watching a slow-motion train wreck." He added that "AMD remains a fundamentally risky choice in our view, and given several ugly quarters, shares are likely to be dead money for some time."




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

HP 14-x030nr 14-inch Chromebook

If you're like us, chances are you've come to realize that you need the ability to access the Internet on the go. Also, you've prob ...

15-inch MacBook Pro with Force Touch

Apple's 15-inch Retina MacBook Pro continues to be a popular notebook with professional users and prosumers looking for the ultimate ...

Typo keyboard for iPad

Following numerous legal shenanigans between Typo -- a company founded in part by Ryan Seacrest -- and the clear object of his physica ...

toggle

Most Commented