AMD reports $157 million loss – 15% of staff to be sacked
Laurence Howe / 5 years ago
The struggling microprocessor company AMD has reported a loss of $157 million for the third quarter on revenue of $1.27 billion, good for a 10 percent drop since last quarter and 25 percent less year-over-year.
What’s worse, is that around 15% of their workforce find themselves without employment. Roughly 1,700 employees will be laid off through the fourth quarter as part of a just-announced restructuring plan.
It’s not as bad as the 20-30 percent estimates that were circulating via rumor mill earlier this week, but it’s a substantial reduction nevertheless. The cuts are in addition to the 1,400 employees that were let go in November 2011.
Former Lenovo chief and current AMD CEO Rory Read said in a statement issued alongside the earnings report that the PC industry is going through a period of very significant change that is affecting the ecosystem and AMD. They were aware of trends that would reshape the industry but they are happening much faster than the company anticipated.
Source: Wall Street Journal