AMD to cut 430 jobs

Posted on Saturday, May 12 2007 @ 01:19 CEST by Thomas De Maesschalck
DailyTech reports AMD will cut more than 400 jobs:
After confirming it had to reduce expenses, AMD recently announced that it will cut 430 jobs worldwide, which is 2.6 of its workforce. Around 40 jobs will be cut in AMD's Sunnyvale and Santa Clara, CA offices; 80 jobs in Austin, TX; around 12 in Boston, MA; and 50 in Markham, Ontario. No workers in Dresden, Germany, location of AMD chip-making facilities, will be laid off.

The remainder of the job cuts will be spread throughout AMD offices and manufacturing locations around the world. Most of the jobs will be from marketing, sales and administration, but several engineering jobs will also be cut.

The announcement comes after AMD Chief Executive Hector Ruiz described AMD's recent performance as "unacceptable." Ruiz said that as many as 800 jobs, the equivalent of 5% of AMD's workforce, would face possible elimination.

"There is no way to sugarcoat our performance in the first quarter," after the company posted a $611 million loss, said Ruiz.

Industry analysts are unsure if AMD will have to cut more jobs in the near future. "I'm surprised the number is as small as what it is," said Brian Piccioni, a BMO Capital Markets analyst.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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