AMD Slashes Another 500 Jobs to Save Costs
Advanced Micro Devices, which has been struggling to regain its financial standings for nearly two years, announced that it will cut another 500 jobs as its looks to "break even" by the start of 2009. The additional job cuts come after AMD already announced that it would reduce its work force by 10 percent earlier this year. In addition to these cost savings, AMD has spun off its manufacturing division into a new company has sold underperforming divisions within the company.Advanced Micro Devices is eliminating another 500 jobs, including more than 150 positions at its Austin, Texas, facility, as the company looks to regain its financial standings after nearly two years of losses. In a statement released Nov. 5, an AMD spokesman announced that the chip maker decided to slash an additional 500 jobs from its payroll. Earlier this year, AMD announced that it will eliminate 10 percent of its global work force to reduce costs and make the company more competitive against larger rival Intel. After the current cuts, AMD will now have about 15,000 employees worldwide.
The cost cutting comes just a month after AMD announced it will spin off its manufacturing division into a new company, which should save the company millions of dollars in costs. While this week's job cuts are not directly related to the spin-off, it shows that AMD is doing all it can to save money while rebuilding its business around its core strengths of CPU and graphics design.
While AMD is cutting workers, Dell announced earlier this week that it will look to reduce costs by asking employees to take voluntary, unpaid vacations and the company will offer a series of buyouts for other workers. Dell is also starting a hiring freeze that could save additional costs.