Testing times
The rumours were true. AMD announced yesterday that it will be ‘reducing its workforce by approximately 10 percent by the end of the third quarter of 2008.’
It also announced that it ‘expects revenue for the first quarter ended March 29, 2008 to be approximately $1.5 billion, a 22 percent increase compared to the first quarter of 2007, and down 15 percent compared to the fourth quarter of 2007.’
The reason for this has been put down to ‘lower than expected sales across all business segments.’
HEXUS.channel spoke to an AMD spokesperson this morning to try to shed some more light on the situation. ‘We are taking this action to size our headcount consistent with our lowered revenue expectations in an uncertain market environment,’ they said.
‘Headcount reductions are never an easy step, but we need to take this action to help create a cost structure that better positions us to achieve our business objectives and helps return AMD to profitability.
‘Approximately ten percent of AMD positions will be affected in a number of global locations beginning mid-April, with workforce reduction action expected to be completed by the end of the third quarter. The reductions are expected to span all groups and all levels within the company based on business needs.
‘As a result of the workforce reduction, AMD expects to record a restructuring charge in the second quarter. At this time, we are unable to determine the estimated amount of the charge as details are currently being finalized,’ they concluded.
Official press release: AMD Updates First Quarter Outlook
an opportunity to use decimated correctly, missed.
