Internal AMD memo leaked
This one already made it into today's Shortbread, but it deserves some additional attention. The Inquirer has gotten its hands on an internal memo from AMD CEO Hector Ruiz to all AMD employees. The email is an attempt to rally the troops and define what will be necessary to reverse a series of consecutive losing quarters.
- rebalancing channel inventories; an action we took in Q3 to bring inventories in line with current PC market demand,
- bolstering our capital structure; reducing capital expenses and refinancing assets to provide additional liquidity for 2003, and
- reducing our breakeven point; where we committed to bringing our quarterly operating costs down by $100 million by early next year.
I can't help but wonder what kind of position AMD would be in if their execution were better. The Athlon XP 2600+, announced all the way back in August, is only now making its way onto Pricewatch. I'm all for cost cutting and trimming the fat, I just hope that AMD's efforts to reduce operating costs don't hinder its ability to make high-end processors available for consumers to purchase.