Advanced Micro Devices is, without a doubt, a very prestigious name in the chip-making industry and one would assume that the company is garnering huge success. But as it appears, that is not the case and the company has been off its earnings-target by a significant margin. Now, it is planning to cut down its workforce by up to 30 percent, laying off thousands of employees in the process.
AMD has not made any official announcement stating this yet but it has been revealed by sources close to the company. According to these sources, the axe will come down chiefly on the sales and engineering divisions. That is because in the past, these two divisions have been spared when laying off employees but this time, they will have to give up a significant number of them.
AMD currently has a total of 11,100 workers and going by the claims of these ‘inside sources’, it is laying off 30 percent of them, which means up to 3300 AMD workers are going to lose their jobs.
Naturally, such a huge cutback on workforce may affect the scale of products offered by AMD, forcing the company to possibly relinquish a few of them or at least scale back. The general environment among AMD workers is reported to be grim and unhappy since they have been expecting the cutbacks for quite some time.
Other sources peg their estimates of cutbacks at nearly 10 percent, meaning that at least 1170 employees will still have to let go of the company. What remains to be seen is that after these cutbacks, can AMD steer back to the profitability it has been looking forward to.
Courtesy: All Things D