CHIP DESIGNER AMD has announced plans to lay off approximately 10 per cent of its workforce to cut costs.
Since AMD appointed Rory Read as CEO earlier this year there have been a few months of relative silence from the firm, but now Read has announced that AMD will engage in restructuring to save $10m in the fourth quarter of 2011 and $118m in 2012. As part of that restructuring around 10 per cent of the company's workforce will be laid off, which amounts to about 1,000 jobs.
Read said the job losses are part of reducing the firm's cost structure and "focusing our global workforce on key growth opportunities". In a statement that tries to calm investors rather than employees worried about their jobs, Read said, "The actions we are taking are designed to improve our ability to consistently address the needs of our global customer base and stake leadership positions in lower power, emerging markets and the cloud."
While Read mentioned the cloud in his statement, AMD also said that the money it saves from slashing its workforce will be ploughed back into research and development to reduce power consumption and address emerging markets.
This year saw AMD launch its first consumer Fusion processor that combines CPU and GPU cores on-die. AMD has bet a lot on Fusion clawing back lost ground from Intel in the mainstream market and some analysts are claiming that the market for combined CPU and GPU chips is growing fast, with AMD doing particularly well. Nevertheless, AMD needs to cut costs and wait for more applications to arrive with GPGPU acceleration before it can really stick it to Chipzilla.
AMD said its workforce reduction will occur throughout the company and at various locations throughout the world, just in time for Christmas. µ
Plus the cost of ambition as moonshots eat into the coffers
Spoiler alert: it's probably VeriSign
Did we say cuts off? We meant traps them inside their own home