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
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.
AMD is also eliminating underperforming
parts of the company. In
October, AMD announced that it had sold its Digital Television division to
for $141 million.
Michael Silverman, an AMD spokesman,
wrote in an e-mail that these layoffs are aimed at helping AMD
achieve its $1.5 billion "break-even" revenue point. As 2009 approaches,
Silverman wrote that AMD is looking at other
ways to save even more costs.
"Today's announced headcount reduction is an unfortunate but necessary part
of this process to help us align our people with the focused programs that
achieve our objectives, eliminate duplication of efforts and allow us to
operate more efficiently," Silverman wrote.
"As we prepare for 2009, we will continue to assess AMD's
programs, activities and staffing needs, in order to ensure that we align with
our global market realities, and set the company up for consistent
profitability," Silverman added.
In October, AMD reported another round of
disappointing financial results. In the third quarter, the company reported a
loss of $67 million, or 11 cents per diluted share. The company's net revenue
stood at $1.78 billion.
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.