Both of the unfortunate reports made about AMD a week ago, saying that the chip developer was facing financial disappointments and might considerably reduce the size of its workforce, have been confirmed by the company.
Advanced Micro Devices has published its financial report for the third quarter of 2012, wherein it is stated that revenue ($1.27 billion / 971 million Euro) fell 10% sequentially and 25% year-over-year. The net loss was of $157 million, or 120 million Euro.
The Sunnyvale, California-based company is echoing Intel's words, that the entire PC market is going through tough times.
The CEO even said that, while they knew what trends would reshape the industry, they did not expect them to have such a quick pace.
“We must accelerate our strategic initiatives to position AMD to take advantage of these shifts and put in place a lower cost business model,” CEO Rory Read said.
“Our restructuring efforts are designed to simplify our product development cycles, reduce our breakeven point and enable us to fund differentiated product roadmaps and strategic breakaway opportunities.”
And thus we reach the heart of the matter, these “restructuring efforts” that we had an inkling of since last week.
The CPU, APU and GPU maker will, indeed, fire a high number of people, though not as great as we were led to believe. Instead of 30% of its global workforce, AMD will lay off 15%.
The workforce reduction will be complete by the end of the fourth quarter, which is rather quick. Layoffs numbering in the thousands usually take longer.
At any rate, the corporation hopes to save $200 million throughout the next year (2013), and it believes that fewer people on its payroll, and the “simplified product development cycles” are the key to achieve that.
Given that its expectation for October-December is that revenue will fall by another 9%, a rebound in 2013 is sorely needed.