AMD Rumored to Announce Massive Layoffs

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

[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.

Source URL: http://investorplace.com/2012/10/amd-rumored-to-announce-massive-layoffs/
Short URL: http://invstplc.com/1fofqp1

---