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.
- [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/