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AMD In Further Troubles

Chip manufacturer is hemorrhaging money

It seem to be no end of trouble for AMD recently, with issues of people leaving the company, people loosing their jobs and massive cut back to save them selves from massive losses.

It's no secret that the computer industry as a whole is suffering at the moment, you can blame that on so many different factors. The global financial crisis for one and the shift in the way we use technology and mobile platforms for another, not to mention the competition from rival companies such as Intel and ARM all trying to hold only what bit of the market they have.

AMD unfortunately seem to be sticking the worst of it at the moment and with a dept of around $2.04 billion to clear off, it's likely a headache that won't budge any time soon. This is worsened by the fact the companies cash supply is being eaten away at an alarming rate. Dropping to £1.5 Billion, which to many is obviously a lot of money, but it's simply not enough to keep the company running the way it is.

AMD has seen a $279 million sized bite out of their budget, if that rate continues then they will be looking at a mere $600 million left over in 12 months time. You don't need to be a great mathematician to work out they would last two years at that rate.

So what's next from AMD, are they going to speed up the rate at which they shed staff, will cutting the work force improve their profit margin? who knows, but lets hope that their new range of CPU, GPU and APU can see a new flow of cash to the company, because quite frankly the thought of a world without a good rival to Intel troubles me.