/// AMD to Cut Up to 30 Percent of Workforce

October 12, 2012  |  All Things Digital


Days after warning of a huge sales and earnings miss , chipmaker Advanced Micro Devices is close to announcing a significant reduction in its workforce that could be be made public as early as next week. According to sources familiar with the company’s plans, (they asked not to be identified), AMD will announce next week that it will cut between 20 percent and 30 percent of its employees, which, given AMD’s headcount of about 11,700 11,100 workers, would amount to between 2,200 2,300 and 3,300 3,500 jobs. The cuts, the sources said, will affect employees involved in engineering and sales, groups of employees that have been spared in previous rounds of cuts. Additionally, these people, who are familiar with the company’s operations, suggest that the cuts will be deep enough as to indicate that AMD may be forced to scale back some of its product offerings. The cuts might be disclosed when AMD announces its quarterly results on Oct.18, or the announcement could come on Oct. 25, sources said. One source said the cuts may be completed by the 25th, at the close of a 10-day process. CEO Rory Read is said to have brought in a team of business consultants from McKinsey & Company and BCG to advise the company. McKinsey’s role is said to involve handling the cuts, while BCG is said to be consulting on what one source described as a “grand strategy” to take the company forward. One source described the mood within AMD as grim. Employees have been expecting the cuts for some time. “There are a lot of nervous people, and not a lot is getting done right now,” the source said. A third source said that the scale of cuts may be lower, closer to between 10 percent and 20 percent of AMD’s workforce, which would imply a range of between 1,170 and 2,300. An AMD spokesman declined to comment

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AMD to Cut Up to 30 Percent of Workforce


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