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The last few months have been humbling for virtually every company in every industry around the world. Global demand is down dramatically. And uncertainty about both the timing and intensity of a potential recovery has risen. This combination has made our goal of regaining profitability and free cash flow more difficult – and more important - than ever.

At a time like this, I think it’s important to remind ourselves and our teams of two ‘undeniable truths’ that should keep us motivated about the future. The first is that we play a critical role in an essential industry. Our customers both want and need us to thrive … and we have the assets, both in the form of IP and people, to succeed. Second, great companies see major disruptions such as this one as opportunities. Economies always rebound, demand picks up, and future success goes to those who make the right choices to position themselves for the inevitable turnaround. We have lived through adverse times before, and we will do so again.

Meanwhile, we are weathering a monster of an economic storm, one that requires additional swift action and some very difficult decisions. First, we are going to have to further reduce our headcounts and our budgets immediately, to help meet a new, lower breakeven target. More specifically, our current plan is to reduce our headcount by approximately nine percent of AMD’s ‘product company’ headcount in the first quarter through a combination of attrition, previously communicated divestitures, and a reduction in workforce. These reductions will be primarily focused on manufacturing and sales, marketing, and general and administrative functions, while limiting R&D reductions wherever possible.