A spokesman for the chip maker denies reports that it plans to cut 5 percent of its 16,000-person work force.
Advanced Micro Devices is denying reports in several publications that it is
preparing to cut 5 percent of its 16,000-person work force after less-than-expected
sales in the first quarter of 2008.
In an e-mail, Michael Silverman, a spokesman for the
, company, wrote, "We did not have a
workforce reduction." He declined to comment about
stories that appeared in the Inquirer
and other publications, which cited
sources familiar with the matter.
The chip maker's financial struggles since 2007 have been well-documented as
strained to bring its quad-core Opteron
and Phenom processors to market in a timely manner. The company has also
struggled financially after buying graphics maker
announced its fourth-quarter
earnings in January
, it reported a net loss of $1.77 billion, or $3.06 per
share. The loss included a $1.61 billion, or $2.89-per-share, charge related to
Hector Ruiz has promised to bring the company back to financial stability by
the second half of this year, and he strongly resisted calls from Wall Street
to cut the work force.
John Spooner, an analyst with Technology Business Research, said layoffs
remain a real possibility for
continues to struggle financially and if Intel keeps delivering significant
upgrades to its own microprocessor technology, which will put additional
pressure on the company.
's first financial quarter of 2008
closes in early April, and the chip maker might have a better sense of its
business outlook then. The company will officially report its results later
"With only about a week left in the first quarter,
has a good view into its results. But, right now, everyone has to wait and see
what will happen," said Spooner. "The point is that the quarter has not closed
just yet, so
is not likely to make any
moves. After the quarter closes, the company will decide what to announce, if
anything, with regard to its headcount."
A Sliver of Silver Lining
Not all the news for
has been bad
since it released its fourth-quarter numbers. Since then, the company has begun
shipping both its quad-core and
tri-core Phenom processors
for desktops. It has also fixed any flaws with
its quad-core Opteron chip, and Hewlett-Packard
announced this week that it will begin selling systems with the new
has announced that it
plans to ramp production of a new line of 45-nanometer processors later this
year. Spooner added that
quickly ramp up its various chip offerings soon in order to fulfill the promise
of returning to profitability by year's end.