There is speculation all around the internet that chip manufacturer AMD are looking at cutting costs within the business after a massive share drop due to an announcement by the company that their revenue would be down 10% compared to Q2 revenue (see this post by Peter https://www.cclonline.com/article/603/News/NoCat/AMD-Share-Price-Drops/).  As Peter said this is not unique for AMD but a down turn in the industry as a whole and it’s a trend that is likely to last as well. With a shift towards tablet/ smart phones Intel and AMD are going to have to share the market with ARM whose range of mobile processors dominates the market.

You may be wondering where these cost cuttings are going to be found, well, bloggers and journalists alike are saying that AMD are looking at cutting around 2.000 jobs and it looks like most of the cut backs (around 20 – 30 per cent) will be in the sales and engineering departments. The shock for myself is cutting back the engineers, if true, without engineers it will be less likely that AMD will be developing newer cutting edge products and offer a true alternative to a dominant Intel.

AMD are not confirming or denying any speculation about cost cutting at the present moment in time but I wouldn’t expect them to put it off for too long.

 

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