A couple of weeks ago, we caught wind of a rumor suggesting AMD was preparing to cut its work force to less than 10,000 employees, a drop of about 9%. That report came from VR-Zone, and now CNet has chimed in with word from its own sources. According to “people familiar with that matter,” AMD is poised to axe as much as 20-30% of its staff. However, CNet says the number of layoffs could be lower, and it suggests AMD may release more information on the purported job cuts next week.
SemiAccurate’s sources are talking, too, and they echo the figures posted by the other two sites. Charlie Demerjian’s moles tell him that a minimum of 10% of AMD’s workers will lose their jobs—and, crucially, that 30% of the firm’s engineering staff could be on the chopping block. Those engineering cuts will purportedly hit AMD’s graphics division the hardest, which is a shame considering the performance of recent Radeons.
Round about a year ago, AMD laid off 10% of its work force as part of a restructuring effort designed to improve the company’s efficiency. Numerous high-profile executives have left the company since, and AMD’s financial position has weakened. As we reported earlier today, AMD announced that its third-quarter revenue and margin will be substantially lower than anticipated. Revenue is now expected to fall 10% from the second quarter. Q2 results were themselves down 11% from the first quarter. AMD’s Q3 margin is expected to be just 31%, a drop of 14 percentage points from the previous quarter.