14 DAY TRIAL // Despite the fact that AMD dismissed the layoff rumors presented by us last month, industry sources have now confirmed that the chip manufacturer is gearing up to shed some more jobs until April 15.
According to the sources, AMD informed its key partners that the company will enter a staff restructuring process that will result in a number of jobs being cut. The meeting was attended by two Executive Vice Presidents and a few Vice Presidents at AMD.
Moreover, the layoff news was confirmed by a couple of executives at the company, such as Dirk Meyer, President and Chief Operating Officer of AMD; Mario Rivas, Executive Vice President, Computing Products Group, Jay Nunez, VP of North America, Mark Jones, Rueven Soraya, Director Chipset Business; and Larry McIntosh, Director of North America Channel Sales at the chip manufacturer.
The confirmed news claim that AMD will ultimately layoff 5 percent of its entire workforce, and rough estimations say that the company will dismiss between 800 and 850 of its 16,719 employees.
Advanced Micro Devices has had yet another rough quarter, that piled up some more debt checks. The much-awaited Phenom chips have finally hit the market, yet they do not live up to the customers' expectations. The long baking period, and the chips' low clock frequency made them less appealing than Intel's counterparts which keep selling at an accelerated pace.
However, laying people off seems to be the least successful combination for the company. It might be a short-term salvation, but AMD's troubles are far from ending. Paying less people won't even stabilize its critical financial condition, not to mention profits.
The only viable solution is for AMD to get back to work and focus on its upcoming high-performance 45-nanometer parts. In order to do so, the company needs its human assets, but that's not likely to happen if it finally sheds the jobs until April 15th.