Advanced Micro Devices (AMD) could cut up to 30 percent of its workforce, following a warning from the chipmaker this week that its quarterly revenue would fall due to a weak global economy.
The company, which makes processors for PCs and servers, could let go 20 percent to 30 percent of its employees within coming weeks, according to people familiar with the matter, though they added that the number of affected workers might also be lower.
AMD warned that its third-quarter revenue likely fell about 10 percent from the previous quarter. It expects third quarter gross margin to be 31% less than the previous expectation of 44%. This is mainly because of an inventory write-down of around $100m, due to lower anticipated future demand. The company is due to report its financial results on October 18.
Last year, the company appointed a new Chief Executive Office, Rory Read, and one of his first major moves was to announce a plan in November to slash 10 percent of its workforce to save about $200 in operating costs.
AMD declined to comment on the downsizing plan. As of February, AMD had about 11,705 employees worldwide.
[Source]– Reuters