SAN FRANCISCO Oct 12 Advanced Micro Devices Inc
could cut up to a fifth of its staff of nearly 12,000,
following a warning from the chipmaker this week that its
quarterly revenue would fall due to a weak global economy, a
source familiar with the matter said on Friday.
The source, who asked not to be identified, told Reuters the
company's second round of big layoffs in a year would be close
to a range of 10 percent to 20 percent.
Technology blogs including CNET and All Things D reported
earlier that AMD could cut between 20 percent and 30 percent of
As of February, AMD had 11,705 employees worldwide.
Citing sources, All Things D reported that AMD could
announce the cuts next week, that they could include employees
from engineering and sales, and could be deep enough to require
AMD to scale back some products.
AMD declined to comment.
Like its larger rival Intel, AMD was caught flat-footed in
recent years with the emergence and fast growth of mobile
devices like Apple's iPad.
Tablets and smartphones, once considered a niche market by
Intel and others, are fast gaining consumer acceptance
and eating into the sales of laptops and desktop computers,
while a slowing global economy is dampening spending in general.
On Thursday, AMD warned that its third-quarter revenue
likely fell about 10 percent from the previous quarter. AMD is
due to report its financial results on October 18
AMD and Intel have been slow to adapt their PC chip designs
to mobile. But while Intel has poured its massive resources into
efforts to catch up to smartphone chipmakers like Qualcomm, AMD
has yet to define a clear mobile strategy.
The chipmaker has also been plagued by execution setbacks
that have led to a loss of market share to Intel and to graphic
chip rival Nvidia.
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.
Shares of AMD were up 0.72 percent in after hours trade.
They closed down 14.37 percent at $2.74 earlier on Friday,
hammered by the company's revenue warning the day before.