Chipmaker AMD will cut staff by 7 percent
- 17 October, 2014 08:12
AMD's new chief is making her mark quickly: By the end of 2014, the chipmaker will cut worldwide headcount by about 7 percent in a restructuring plan it hopes will put it on the path to improved profits.
The layoffs will start immediately, and come just a week after AMD appointed former chief operating officer Lisa Su as the company's CEO. She replaced Rory Read, who held the post since August 2011.
The company did not share specific plans about the restructuring or which parts of its business will be impacted by layoffs. AMD employed 10,149 people at end of its third fiscal quarter on Sept. 27.
AMD has struggled over the last couple of years, reporting just a few quarters of profit. As a result of the layoffs and slashing costs such as real estate expenses, the company expects to save US$9 million in the fourth quarter and around $85 million in fiscal 2015.
AMD's third-quarter revenue reported on Oct. 16 was $1.43 billion, declining by 2 percent compared to the same quarter last year. AMD reported GAAP net income of $17 million, a decline from the net income of $48 million reported in the same quarter last year.
Chip sales into the PC market account for most of AMD's business. But with PC sales slowing down, the company is focusing more on the growing area of graphics and custom chips, and devices such as gaming consoles. AMD is also revamping its server roadmap to include ARM processors.