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AMD to lay off 500 employees
By siliconindia
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Saturday, 08 November 2008, 00:15 IST |
13 Comments
California: AMD, the global chipmaker is giving pink slips to 500 of its employees, who make three percent of its overall workforce, as a result of the economic crunch. Earlier, AMD had laid off 1,600 workers in April and had hinted at more job cuts.
The layoffs were announced after AMD released their third quarter earnings which are $1.776 billion, including process technology license revenue of $191 million. There was an increase of 32 percent in the third quarter as compared to second quarter of 2008 and 14 percent compared with the same quarter of 2007. AMD reported a loss of $67 million in the third quarter of 2008.
AMD has also announced that it was splitting the company into two businesses- one company that focuses on microprocessor design and another that will manufacture them.
As part of the division, AMD is launching a new company knighted 'The Foundry Company', a merger between AMD and Advanced Technology Investment. The company will create a new U.S. based semiconductor manufacturing company in New York. The Foundry Company, which also includes a massive investment from Mubadala Development, will focus on the growing demand for independent foundry production capabilities.
The division was an effort to shake off further losses and to vie more effectively with top Intel contenders. The New York facility is said to create more than 1,400 direct jobs and generate an additional 5,000 jobs in the region.
"The decrease is due to lower-than-expected sales across all business segments," the company said in a statement. "AMD announced plans to adjust its cost structure by reducing its workforce by approximately 10 percent by the end of the third quarter of 2008."
