RSSAMD to lay off 500 more in its streamlining effort
By Tim Conneally | Published November 6, 2008, 10:00 AM
Yesterday, chip designer AMD said it will be continuing its re-structuring efforts by cutting 500 jobs internationally, in addition to cuts it had already announced in the spring.
Sunnyvale, California's Advanced Micro Devices is the second largest producer of x86 microprocessors worldwide, behind Intel. Since last year, the company has been going through various stages of what it called its "Asset Light/Asset Smart" move, to streamline business and return it to profitability.
AMD has been losing money seemingly independently of the economic crisis, and has had an eight quarter losing streak. In other words, AMD has been losing money for two years straight.
In October, AMD spun off its fabrication division into a new joint venture with Abu Dhabi capital investment firm ATIC, and in August it pulled out of its Digital TV business. In a restructuring announced last April, the company said it would be laying off 1,600 employees worldwide, or roughly 10% of its workforce.
Wednesday's announcement affects three percent of AMD's global staff, with immunity given to the nearly 3,000 employees of the spun-off fabrication venture.
RIP AMD
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|No company has cut its way to success yet.
Not a single one.
Bye AMD, been a nice ride.
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|...which goes to show how much you know aobut the business world. When a merger of two companies occurs, there are always cuts. Funny how you don't seem to want to apply this flawed maxim to either HP, It happened not once, but twice: when they merged with Compaq and again when they acquired EDS.
As to AMD, it will never ever die. Why? For the same reason that Microsoft will never let Apple (or Corel for that matter) die.
Take a lesson and 'nuff said.
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|ummm, I think the point was losing money for 2 years straight, last I checked HP had not been able to reproduce that feat. if we follow your point to a conclusion would it mean they can continue to lose money and cut back and everything will be fine.
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|To be expected in any endeavor of this type. Quite normal.
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