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AMD may lay off 30 percent of workers, following disappointing earnings

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AMD processor chip silicon stock 1024
AMD processor chip silicon stock 1024

Yesterday, AMD admitted that sales are going down. Today, multiple sources are reporting that the chip company is planning mass layoffs of as many as 3,500 workers. CNET, All Things D, Bloomberg and Reuters all cite anonymous sources who say that the company will announce layoffs soon, though certain anonymous individuals disagree on the number. Some say the company will let go of at least 10 percent, and up to 20 percent of staffers, and others say 30 percent layoffs have been discussed. The company reported headcount of 11,737 employees as of June, so you can do the math. Sources say AMD will likely announce the layoffs next week.

If true, the downsizing wouldn't necessarily be surprising: it'd be the latest in a long string of bad news for the company. AMD shed 1,400 employees last November, including senior executives, and more have departed since. AMD CFO Thomas Seifert left the company just last month. Last quarter, the company reported net income of just $37 million, with revenues down 11 percent, and the company's forecasting another 10 percent dip in revenue for Q3 as of yesterday. On the product side, the company has bold words, but it doesn't seem to have attracted much substantive interest in its chips for laptops and tablets. The company specifically mentions a $100 million write-down for "lower anticipated future demand for certain products." We're looking forward to seeing if the chaos of Windows 8 will let AMD find itself again, but it may take drastic measures to turn around this ship.