CEO Rory Read Sanctions New Round of AMD Job Cuts – Report

AMD is reportedly set to shed between 20 and 30 percent of its workforce after it lowered sales and earnings forecasts.

A company insider told AllThingsD that between 2,200 and 3,300 people could lose their jobs and the announcement could be made as early as this week. AMD is due to reveal its quarterly results on Thursday, although this could be made the following week.

The majority of AMD job cuts are set to take place in AMD’s engineering and sales divisions, areas which have been granted a stay of execution in previous rounds of job cuts.

AMD job cuts

Sources said the mood around the company was grim and the cuts could be sufficient enough to suggest that the company might be forced to scale back some of its product offerings. However another person said the cuts could be lower than expected.

AMD is said to have brought in a team of business consultants from McKinsey & Company and BCG for advice on how to the handle the downsizing and to determine its future strategy.

The redundancies are the second major round of job cuts since former Lenovo COO and President Rory Read replaced the outgoing Dirk Meyer as CEO in August 2011. Last September, the company reduced its workforce by around ten percent, in an effort to reduce operating expenses.

The chipmaker said the savings would put it in a better position to pursue initiatives around low-power computing, emerging markets and the cloud.

Do you feel equipped to choose the right microprocessor? Find out with our quiz!

Steve McCaskill

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

Recent Posts

BNP Paribas Joins JP Morgan Blockchain Trading Network

French bank BNP Paribas becomes first European bank to join JP Morgan's blockchain-based Onyx Digital…

5 hours ago

SEC Held Off Elon Musk Enforcement ‘Due To Court Fears’

US securities regulators may have refrained from enforcement actions against Elon Musk due to discouraging…

6 hours ago

Snap Earnings Warning Triggers Tech Sell-Off

Investors spooked after Snap warns of deteriorating economic conditions, says earnings now 'below the low…

7 hours ago

Russian Operator Discounts Smartphones As Sanctions Bite

Biggest Russian mobile operator MTS begins selling discounted and second-hand smartphones as Russians hit by…

8 hours ago

Clearview AI Fined £7.5m Over Facial Recognition Data

UK Information Commissioner's Office orders controversial facial recognition firm Clearview AI to delete data it…

9 hours ago

Airbnb To Pull Out Of China Amidst ‘Pandemic Challenges’

Airbnb to pull out of China as ongoing zero-Covid policy places severe restrictions on domestic…

10 hours ago