AMD Announces Restructuring Plan to Cut 5% of Workforce
Samuel Wan / 2 years ago
When the Silver Lake investment talks broke down, AMD spoke of exploring other strategic options. Today, we’re finding out that one of these options being adopted is a new restructuring plan. In an effort to cut costs and realign resources, AMD will be cutting 5% of their global workforce among other cost-saving measures. Other major savings are expected to come from outsourcing IT, consolidating real estate and reorganizing its many divisions.
With a 5% staff cut, it will bring AMD’s workforce down from about 9700 to 9200. This is coming from a firm which once boasted about 20,000 employees. Savings start off small with only $9 million saved for 2015 but it jumps to $58 million by the end of 2016. Of course, this is due to various costs associated with cutting staff, with $31 million coming from severance costs and about $10 million more from various other charges.
While $67 million saved over 2 years is quite a bit, it won’t do much when AMD is expected to post losses in the range of 100’s of millions. With the recent departure of various executives and Jim Keller and the separation of the graphics division into RTG, things are not looking up. Hopefully, the launch of the new 16nm GPU lineup in 2016 will help revitalize the firm.
Thank you StreetInsider for providing us with this information