AMD Reports A Quarterly Loss Of $157 Million, Lays Off 15% Of Workers
About a week ago, we reported that AMD is laying off 20-30% of their workforce. The company recently reported a quarterly loss of $157 million and revenues are down 10%. The company reduced their workforce by around 15%. AMD reported Q3 2012 revenue of $1.27 billion, which is a 10% decrease since last quarter and 25% for the same time last year.
As part of AMD’s restructure plan, they let go of around 15% of their workforce this quarter, which means that they will have around 1,700 fewer employees. AMD employed around 11,813 workers as of September. AMD laid off 1,400 employees last November and AMD CFO Thomas Seifert left the company last month.
AMD is hoping to save $20 million in Q4 and $190 million in 2013 as a result of the restructuring. AMD CEO Rory Read essentially said that the PC industry has been in decline so that has affected their business directly. Below is a statement from Mr. Read:
The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD. It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated. As a result, we must accelerate our strategic initiatives to position AMD to take advantage of these shifts and put in place a lower cost business model. Our restructuring efforts are designed to simplify our product development cycles, reduce our breakeven point and enable us to fund differentiated product roadmaps and strategic breakaway opportunities.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry