More layoffs at AMD expected by January

More layoffs at AMD expected by January

Summary: AMD could be cutting its staff back even more within the next two months, according to AllThingsD.

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After already sustaining a major round of layoffs recently, AMD workers likely need to prepare themselves for another hit soon.

Citing unnamed but "multiple" sources, AllThingsD reported on Friday that the chipmaker is facing even more job cuts, which are expected to take place by the end of January 2013.

Some employees are being quietly told by managers that they will lose their jobs in January, but are being kept around for the moment as insurance against the possibility of other key people quitting before then, one source told me.

Another source told me that it’s an open secret around the corridors of AMD’s offices in Sunnyvale, Calif., and Austin, Texas, that another round of job cuts are coming. "The thinking is that management needs to get a few things right that they didn’t in the last round of layoffs," one source told me.

In October, AMD already braced itself for large dent to its workforce, with initial reports suggesting almost 20 to 30 percent of its global staff would be cut.

That figure ended up being closer to 15 percent, but it was still a significant reduction for the processor company, nonetheless.

This time around, there isn't a projected forecast yet as to how many employees might have to go. Regardless, AMD hasn't commented publicly on the situation either.

Topics: Tech Industry, Hardware, IT Employment

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15 comments
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  • AMD got caught, as the x86 era ends

    AMD got stuck in the x86 era, which is now coming to an end.

    As the world switches to ARM processors, to power everything from the smallest embedded device right up to the largest server farm, Intel and AMD got left behind. AMD has belatedly got itself a license to manufacture ARM processors.

    The problem with x86 is that when the consumers leave it behind, which they will, there will be no money left to keep it progressing. All the money will have moved to ARM development, which will accelerate, as x86 development declines.
    Vbitrate
    • Architecture has nothing to do with it...

      Just look at nvidea...

      They are a chip manufacturer; their inability to make money has little to do with architecture sales; they've not made the products. Simple as.

      I don't share your clear cut arm-is-the-answer philosophy - i simply don't know how the desktop market is going to play out over the next few years. My guess is for the time being at least arm based chips are not going to catch x86 performance on a platform where power consumption just isn't massively important in the next couple of years. Going further than that who knows?! I suspect non-volitile memory may well influence the future architectures of desk and laptops.

      AMD are in trouble because as a business they've made bad decissions; yes intel have an advantage but believe me they're doing okay selling the same architecture. Just go back 7 or so years; amd had more powerful server chips and the desktop market was in real conpetition. They bought a graphics chip manufacturer - one of the biggest and promised serious on the chip performance for graphics; their chipsets were going work with their processors to get the most out of their graphocs cards; essentially an amd machine for graphics - games, media; the modern pc world would be a no brainer. An amd pc would be designed from the chip through the chip set and into the descrete chips to get the best possible performance.

      This is not what they delivered. They attempted to create a platform at the budget end of the market and gave up on the high performance home market. Many of their chips outperform their intel counterpart ; especially in price-performance. However there's no high end. Take the bulldozers; even at 8 core they were outperforming some of intels i5's; especially those around the same proce point. But where most people started choosing their chips at i5, amd maxes out here.

      The perception is that they are a budget manufacturer; i don't agree with the view, but it had become something of a view over the last few years. They haven't been seen to keep up and their ideal platform has just meant that if you go intel you can have sli or crossfire... Amd only crossfire.

      It isn't ARM or intel's fault their in trouble. It's theirs. If the future is arm, they'd better get working on their arm chips...
      MarknWill
      • More layoffs at AMD expected by January

        @MarknWill
        it is a known fact that intel used illegal tactics to control the market and caused the current amd financial woes. the acquisition of ati is a coup for amd that is keeping it afloat despite intel's underhanded method of doing business. as for budget manufacturer, it is nothing but perception, just like consumers' perception that apple products are better than the competition even though both are using the same parts/technology. the assertion that amd is a budget manufacturer is nonsense. the reason intel has to charge dearly for its top-end products is to recoup the very high cost of keeping its tock, at the tune of $10 to $12 billion a pop (so we should support intel to let it continue pushing the envelope.) as for amd, it cannot afford to compete lock-step with intel, that it was forced to sell its foundry, and thus lowering its cost of producing chips albeit at one or two steps behind intel's tock technology.
        kc63092@...
    • x86 era is now coming to an end?

      then why is Intel selling so darn many of them?
      Challenger R/T
    • x86 era isn't even close to ending...

      It's still a matter of years before the ARM platform is in any position to take over the mainstream computing market. Performance-wise, it x86 will still have the edge for the forseeable future.

      Besides all that, as MarknWill also mentioned, if the waning of the x86 era were really to blame for AMD's downward spiral, they would *maybe* be starting to feel a pinch now. AMD's been in trouble for quite some time, while intel are still riding high. Doesn't sound like AMD's problem is all about a shifting market.
      daftkey
      • You have to redefine Mainstream Computing

        The mainstream has already deserted x86.

        More and more people will be accessing the internet and applications using an ARM processor than an x86 processor.

        The x86 processor was once considered a "home" computing platform, not a server platform, but as momentum for the platform grew, so did development money, and it eventually found acceptance in servers and data centers.

        At the moment, the ARM processor is considered a platform for small devices. But as the momentum grows, so will its ability, until the largest data centers are using it.

        But the bulk of the consumer market has already deserted x86. It's already happened. Yes, Intel is still selling a lot of x86 processors, but watch each month as traditional PC sales (and therefore x86 sales) plummet. Intel and AMD will have to squabble over the scraps that are left.
        Vbitrate
        • The transition in progress means it will happen

          Let's remain temporally correct...

          Still, noting how many users are thickheaded, but it's not like they care about the limitations of these portable devices. Right down to photo quality.

          Wake me when content consuming devices can actually do proper and thorough content creation.

          The Pied Piper is having a field day.

          Scraps - that's what the working class is for...
          HypnoToad72
  • Exit X86

    http://www.youtube.com/watch?v=kqio-PxEjHc

    The market for x86 based consumer client computers is watched intently by my Wall Street colleagues. The key indicator currently is Windows 8 positive buzz. If this new Microsoft facelift does not spark a popular revolution (and we hope it does) in consumer client then X86 will spend its last days in the IT closet hospice. X86 is known to our inner circles as X-cessive Energy 80's tech and it will equilibrate amongst the fixed platform gamer and enthusiast crowds and those TAMs are not exiting from a growth opportunity perspective.

    The financial barrier to innovate around Windows 8 is an order of magnitude greater than ARM. Not to mention CISC power requirements. I know all the arguments about current ARM not being able to handle the popular client workloads. Open your eyes. Those popular workloads are being abandoned and Windows 8 may serve as the prime motivator to help accelerate that exodus.

    Windows 8 is what we’re watching because it could help soften X86 consumer client decline. Bets are already placed.

    Guaranteed, we're not going to let our money sit on energy obese tech in light of the cloud. No matter how many gamers overclock and buy multiple displays. Those numbers don't work. Hello!

    AMD we feel is on the right track but they must stick to their plan and not be afraid to further thin their ancient bloated workforce. Put more women in key design and management positions and then they must FOCUS! To that point, we're thrilled to see Microsoft eject Sinofsky and put Julie Larson-Green in the seat. FANTASTIC move! As far as the economy goes, well life is tough. Don't waste a good crisis!
    Max Fountain
    • More like obese thinking

      Given a low-end single-core x86 can mop the floor with a quad-core ARM in terms of performance, your comments are hardly universal truisms...
      HypnoToad72
    • "Our inner circles"

      "X86 is known to our inner circles as X-cessive Energy 80's tech"

      If one thing I've think we've all learned over the years is that when someone relegates their POV to that of an "inner circle", it's usually a load of crap, since you're telling us that we won't find corroborating evidence not because it doesn't exist, but because we're not "In the know".

      Pretty darn convenient.
      Challenger R/T
  • And the economy is saved!

    Hmmm, "adapt or perish" - what happens after everyone dies because adaptation is made irrelevant thanks to automation and other things?

    Weren't people told, decades ago, how good automation was because people would have more time to be free?

    "Produce or perish" is probably the best line a slaveowner ever got to dictate...
    HypnoToad72
    • Adapt or perish....

      As long as the subject is supposedly "real world", isn't there a possibility that the US economy just might be having some small effect on AMD's position. Like the possible expense of a government mandated "cradle to grave" employee health insurance program or a corporate tax increase from 35% to 55%! Or, they may actually be paying attention to the increasing inflation rate, increased unemployment, etc,. etc.

      I have worked in the hi tech industry for most of my life and every company I deal with (over 50) have all cutback on labor staff, inventory, and management personnel in the past year or so.

      Bottom line IS: 'Adapt or Perish'.
      Kevin Reeves
      • 35% corporate tax rate

        The average "effective" tax rate that companies pay is only half the 35% rate.

        http://reclaimdemocracy.org/real_tax_rates_plummet/
        jnowski
  • More layoffs at AMD expected by January

    all these news that x86 is dead and arm is taking over are in the mainstream psyche, but nobody seems to be noticing that the chinese is slowly building up its own processor technology and support chips. kind of remind me what happened in the 70's when the japanese chips manufacturers swamped and crowded out their us counterparts. in those days, it is a mistaken belief that non-western manufacturer could not mount a serious challenge to western technological prowess. but the japanese proved them wrong, and had it not for federal help (anti-dumping law), the inroads of japanese products could not have been abated. well, we are in the same cross road, and nobody seems to be paying attention ...
    kc63092@...
  • More layoffs at AMD expected by January

    Absence of a good visionary, poor execution to goals, lack luster management team amongst reason of AMD's downfall. How many times have they promised customers/supporters only to burn them because they too wanted to jump ship from Intel but are left to hang and dry because of promises broken.
    OurManFlint