AMD to lay off 15 per cent of workforce

AMD's revenue fell in the fiscal third quarter on poor demand for products

Chip company Advanced Micro Devices will lay off 15 per cent of its workforce as it tries to inch back to profitability at a time when the PC market is slumping.

The company will lay off close to 1800 people, and it currently has about 11,813 employees. The layoffs would be completed in the fourth quarter of this year.

The company will also shut down offices as part of the larger restructuring effort. AMD hopes to save $US20 million in the fourth quarter and approximately $190 million in fiscal 2013 as a result of the restructuring effort.

"The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD," said CEO Rory Read in a statement.

The computing industry is being reshaped "at a much faster pace than we anticipated", Read said. The restructuring will make the company nimble and simplify product development cycles, Read said in a statement.

The PC market is in a decline due to a challenging global economy and the move to alternative computing devices such as smartphones and tablets. Research firm IDC earlier this month said that worldwide PC shipments in the third quarter dropped by 8.6 percent compared with the same quarter a year earlier.

Read became the company's CEO in August last year and put in place a new management team to handle the company's operations. The company has restructured its chip road map and manufacturing operations, but demand for the company's products remained weak across the board. AMD recorded a loss and saw its revenue decline in the third fiscal quarter.

AMD's revenue was $US1.27 billion for the third quarter, dropping from the $US1.69 billion reported in the third quarter last year. Analysts polled by Thomson Reuters expected revenue of $US1.29 billion. AMD last week cut its sales forecast for the third quarter.

The company reported a loss of $US157 million, or $US0.21 per share. That compared with net income of $US97 million, or $0.13 per share, in last year's third quarter.

On a non-GAAP basis, excluding certain items, AMD had a $US150 million loss, versus a $US110 million profit a year earlier. The company's loss per share was $US0.20 on a non-GAAP basis. Analysts had estimated a $US0.15 net loss per share.

Revenue from the company's products fell across the board due to weak demand and lower selling prices. Revenue for Computing Solutions, which deals in chips, fell 28 percent year over year. Revenue for the Graphics unit, which deals in graphics cards and boards, declined by 15 percent year over year.

The company earlier this month launched its Z-60 processor for tablets and also new chips based on the Trinity architecture for desktops. It is scheduled to launch new server chips based on the Piledriver architecture in the coming weeks.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?