AMD Rumored to Announce Massive Layoffs

by Tom Taulli | October 15, 2012 10:47 am

Advanced Micro Devices [1]

According to a report from AllThingsDigital[2], it looks like Advanced Micro Devices (NYSE:AMD[3]) will slash 20% to 30% of its workforce, or 2,300 to 3,500 employees. This news comes on the heels of last week’s miserable earnings warning. For the third quarter, the company expects a 10% plunge in revenues.

The current restructuring will affect mostly engineers and salespeople. As a result, AMD will be further behind fierce competitors such as Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM[4]), which continue to invest heavily in their R&D.

But the company has no choice as the PC market contracts. Of course, the culprit is the surge in tablets, especially from Apple (NASDAQ:AAPL[5]) and even Amazon (NASDAQ:AMZN[6]).

Just about a year ago, AMD had another massive layoff, which included about 10% of the workforce. And since that time, the stock has lost nearly half its value.

Tom Taulli runs the InvestorPlace blog IPOPlaybook[7], a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.[8]” Follow him on Twitter at @ttaulli[9]. As of this writing, he did not hold a position in any of the aforementioned securities.

Tom Taulli is the author of various books. They include Artificial Intelligence Basics and the Robotic Process Automation Handbook. His upcoming book is called Generative AI: How ChatGPT and other AI Tools Will Revolutionize Business.

Endnotes:

[Image]: https://investorplace.com/wp-content/uploads/2011/01/AMD1.jpg
AllThingsDigital: http://allthingsd.com/20121012/exclusive-amd-to-cut-up-to-30-percent-of-workforce/
AMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMD
QCOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOM
AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
IPOPlaybook: https://investorplace.com/ipo-playbook/
How to Create the Next Facebook.: http://www.amazon.com/gp/product/1430246472/ref=s9_simh_gw_p14_d0_i1?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-3&pf_rd_r=0GRB6ZMCTYDZVNG7Q7NV&pf_rd_t=101&pf_rd_p=470938811&pf_rd_i=507846
@ttaulli: https://twitter.com/ttaulli

Source URL: https://investorplace.com/2012/10/amd-rumored-to-announce-massive-layoffs/