AMD lays off 100 more
AMD IS GOING to lay off 100 more people than previously planned, 600 instead of the previously announced 500. The firm is also going to take a write-off based on the ATI and Spansion.
According to Reuters, the additional people will add to the charge the firm takes this quarter, bumping it up from $50 million to $70 millon, with more to come in 2009.
Additionally, it will take hits on ATI and Spansion, but these are on paper only. The point here is that they have the 'value' on the books, and if there is a tax advantage to be had, they will write it down. Some accountant somewhere saw that advantage, and so they wrote it down.
In the end, the only real news here is that there are 100 more people being let go, with a cost in the $20 million range. Mind you, if the charge for the first 500 was $50 million, this latest lot must be worth double what the first lot got. µ
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AMD needs one heck of a breakthrough or financial angel right now. Their only hope is a breakthrough of the Athlon 64 (vs the P4 at the initial release) now if they don't find a angel with bags of money. That's not entirely unlikely: see the Dubai foundry deal.
This is now the 3rd time AMD has "taken a charge" on the ATI acquisition. Exactly how many times can you value, re-value, re-re-value, re-re-re-value ATI? Also, don't non-profit organizations pay no/reduced taxes?
All those poor workers who actually produced somethign useful, and what does AMD do with their money? They pay Charlie "the shill" Demerjian to write anti-NVIDIA propoganda.
Thar hors fete had ner all away!
ATI is kicking Nvidia everywhere, price and performance. NVidia is kicking customers with bad products that they know are shite and will fail.
AMD's cpu's are not as good for gaming, but they are still cheap, cheerful and powerful enough for the 95% of PC buyers. That's where the real money is.
AMD has ATI so they can provide a 1-stop-shop solution, CPU, GPU and motherboard chipsets to the Taiwanese, and so to the rest of us.
AMD is still kicking Intel for some server stuff, including Virtualisation.