more bad news for AMD, they'll cut 5% workforce

[zMeul]

source: http://www.streetinsider.com/Corporate+News/Advanced+Micro+Devices+(AMD)+Announces+Restructuring+Plan%3B+Will+Cut+~5%25+of+Workforce/10938283.html

 

 

On September 26, 2015, Advanced Micro Devices, Inc. (the “Company”) adopted a restructuring plan (the “Plan”). The Plan is focused on the Company's ongoing efforts to simplify its business and align resources around its priorities of building great products and deepening customer relationships.

 

The Plan provides for a workforce reduction of approximately 5% of the Company's global workforce. The Plan includes organizational actions such as outsourcing certain IT services and application development. The Plan also anticipates a charge for the consolidation of certain real estate facilities. The Company currently expects to record restructuring and asset impairment charges in the aggregate of approximately $42 million resulting from the Plan. The Company expects to record a majority of the restructuring charge in the amount of approximately $41 million in the third quarter of fiscal year 2015, of which approximately $31 million is related to severance and benefit costs, approximately $1 million to facilities related consolidation charges and approximately $9 million of intangible asset related charges associated with the impairment of certain software licenses that have ongoing payment obligations. The Company expects the Plan will likely result in total cash payments of approximately $26 million and $15 million in the fiscal years 2015 and 2016, respectively.

 

The savings from the Plan are anticipated to be approximately $2 million and $7 million in the third and fourth quarters of fiscal year 2015, respectively. The Company anticipates savings of approximately $58 million in fiscal year 2016. The actions associated with the Plan are expected to be substantially completed by the end of fiscal year 2016.

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AMD is "on the ropes"; cutting workforce, from IT .. that's not a very good sign - baffles me a bit the part that they outsource services and app development

the only "app" I can think of is Raptr Gaming Evolved, but that's not their own; and it's being developed by Raptr themselves

[ivan134]

Here we go...

[toogamer]

source: http://www.streetinsider.com/Corporate+News/Advanced+Micro+Devices+(AMD)+Announces+Restructuring+Plan%3B+Will+Cut+~5%25+of+Workforce/10938283.html

 

 

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AMD is "on the ropes"; cutting workforce, from IT .. that's not a very good sign - baffles me a bit the part that they outsource services and app development

the only "app" I can think of is Raptr Gaming Evolved, but that's not their own; and it's being developed by Raptr themselves

I want to cry because AMD is struggling so bad.

[themaniac]

as long as it doesn't slow them too much, while lowering the loses then its fine by me

[Arty]

Amd isn't dead yet? 

[BradH]

R.I.P.

[Dietrichw]

Cutting out the bloated parts of the company isn't all bad. In a way this is actually good news as AMD will be more efficient. Bad news for employees but good for AMD.

[ReHWolution]

That's just heartbreaking. I hope that AMD will recover from this sh*tty period...or it will be the end of good prices for hardware... NVIDIA and Intel are already pushing prices to the sky...

[The Cool n00B]

lol riperoni it's the slippery slope for AMD rn. Right now it's 5%, then 10%, then 20%, then salary cuts, then 25%, 50%, 60%, 75%, bankruptcy. Hopefully Zen brings them back though since I still like the various flame wars on the internet.

[Imabigmac]

that's it? So somewhere around 500 jobs

[Deletive]

Zmeul...

I don't see anything wrong with cutting work force It's a restructure. They need to be efficient anyways and what better is that then cutting the work force. This isn't even negative news, This is just a restructuring plan for departments that aren't even in AMD's current focus.

This is a respectable Business decision that you made it some kind of bad news when it really isn't.  

NO WHERE IN THE ARTICLE EVEN SAY THAT THIS IS BAD NEWS. sure it's 5% workforce cut that AMD has decided to cut to focus on other parts of the company and that group is no longer needed.

 

[zMeul]

...

on the point of reading, you should read on why AMD is doing this; if they would've needed those 5%, they would not be hired in the 1st place

AMD desperately needs money to stay alive, at least until Zen arrives

 

The savings from the Plan are anticipated to be approximately $2 million and $7 million in the third and fourth quarters of fiscal year 2015, respectively

you should also consider this comes not later than the stalling of negotiation with Silver Lake 20% acquisition of AMD

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they're cutting workforce from software development, department that does what?! you guessed it ... drivers

you might've noticed that WHQL drivers are even more far between - 242 days between 14.12 and the latest 15.7

[ivan134]

on the point of reading, you should read on why AMD is doing this; if they would've needed those 5%, they would not be hired in the 1st place

AMD desperately needs money to stay alive, at least until Zen arrives

 

you should also consider this comes not later than the stalling of negotiation with Silver Lake 20% acquisition of AMD

Nice cherry picking.

 

 

The Company anticipates savings of approximately $58 million in fiscal year 2016.

 

[Texhnlyze]

Day is not complete without a zMeul post about AMD. 

[tsk]

What I hear from industry sources is AMD is betting everything with Zen, although it doesn't look like consumer products will hit until Q4 2016 at best, at that point Intel will be readying Kaby Lake. Like with maxwell it looks like nvidia will ship pascal way ahead of AMDs greenland GPU products and this will not help them in the dGPU market.

[VagabondWraith]

R.I.P.

AMD

[Deletive]

on the point of reading, you should read on why AMD is doing this; if they would've needed those 5%, they would not be hired in the 1st place

AMD desperately needs money to stay alive, at least until Zen arrives

 

It's a restructure these people could have been hired under the old CEO, with Lisa Su, she can choose to restructure parts of the companies for other parts. AMD doesn't "desperately" need money to stay alive, They can still to handle their debt and have the confidence to work with that in mind, these are the benefits of corporations. 

There is a difference between needing to cut workforce or being smart with how you're spending money (which from this restructuring plan brought to the table), This is just reorganizing where money is being spent and why, if the company is going in a different direction there is no point in paying people to be irrelevant to the company down the road.

[Notional]

I guess Intel cutting 300 million $ in jobs means they're practically bankrupt!

[zMeul]

AMD doesn't "desperately" need money to stay alive, They can still to handle their debt and have the confidence to work with that in mind, these are the benefits of corporations.

no? http://linustechtips.com/main/topic/453758-has-amd-hit-rock-bottom/ - notice where 0 (zero) is and where preditions are  

they don't, eh ...  :lol:

 

wonder if Jim Keller's departure has anything to do with AMD being unable / not willing to pay his salary

 

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meanwhile, nVidia and MicroSoft sight a agreement for Azure service - http://www.thestreet.com/story/13307606/1/nvidia-nvda-stock-hits-52-week-high-on-microsoft-azure-collaboration.html

[soaringchicken]

:{

[pixeldensity]

Every company lays off part of their workforce every now and then to in order to restructure, which isn't necessary a bad thing. Even Intel just did layoffs with some of their employees recently.

 

 

 

wonder if Jim Keller's departure has anything to do with AMD being unable / not willing to pay his salary

 

 

 

 

As for Jim Keller, it has been heavily implied that he likes to move around a lot when he is finished with the project that he is given, so Jim Keller leaving does not mean it was because of AMD unable to pay his salary.

[Deletive]

no? http://linustechtips.com/main/topic/453758-has-amd-hit-rock-bottom/ - notice where 0 (zero) is and where preditions are  

they don't, eh ...  :lol:

 

wonder if Jim Keller's departure has anything to do with AMD being unable / not willing to pay his salary

 

 

 

When a business is incorporated, its separate legal status, property, rights and liabilities continue to exist until the corporation is dissolved, even if one or more shareholders or directors sell their shares, die or leave the corporation.

 

This includes Debt, They are Liable for all their debt, They don't need to be making positive amounts of money, they could be losing money (which goes into debt) but they have to keep paying their employee's even if that means more debt. The situation isn't bad enough to dissolve the company. If they didn't have a plan to pay off the debt or the company could no longer operate (no people, no assets and such) then the situation would be dire and they would dissolve.

 

[SansVarnic]

I would not call this bad news, just justified administrative house cleaning.

[MageTank]

they're cutting workforce from software development, department that does what?! you guessed it ... drivers

you might've noticed that WHQL drivers are even more far between - 242 days between 14.12 and the latest 15.7

Hate to be blunt, but they most likely deserved to be axed. AMD's #1 pitfall in the GPU realm is its driver optimizations, and if history has taught us anything, its that AMD seldom ever releases driver updates. I would make the same decision if i was paying people and nothing ever really got done. 

 

I don't know if AMD lit a fire under their software team recently, but i do admit that after complaining about CCC, i just recently used it on my laptop after downloading windows 10 on it. Not only did the install go without a hitch, it boasted nice options to tinker with, and did not feel as bloated as it did back in the day. Let's just hope they kept the most competent people, and cut the slackers out to make room for better software engineers. 

[Zah]

"Hey guys, we're bleeding money, and we have all these people on staff, we should maybe axe some of the redundancy."

"No, just let everyone keep their jobs, we have enough money from all those Fury Xs we're not selling because we have none to sell"

 

Hint:  I'm not saying AMD is in a great spot, but people losing jobs because of a restructuring (while it sucks) does not mean bad news for the company.  If it did, every game development company (especially MMOs) would be in deep shit.