Seems that the PC industry is taking a hit again. AMD is announcing layoff of around 10% of its employee. This really reeks trouble for the company. Perhaps it is time to buy its share for long term and potentially future take-over, seems AMD 'cannot' be shot dead or left for the dead due to anti-trust issues in the PC industry. I remember that even Intel has some % of shares in its 'zombie' rival.
Potential buyers, please take note to have huge and deep pockets in-order to bring AMD back in the competition. And also to pour some ALOT hard cold cash in the GlobalFoundaries since AMD is having manufacturing issues.
SUNNYVALE: Advanced Micro Devices Inc unveiled a plan to save about $200 million of operating costs in 2012 by slashing 10 per cent of its global workforce and streamlining internalbusiness processes.
The layoffs mark the first major move by Chief Executive Rory Read, who came onboard in August to try to galvanize a microprocessor maker that has bled market share to larger rivalIntel Corp, while missing out on the mobile device boom.
The layoffs should be completed in 2012's first quarter, AMD said in a statement. Savings generated could help bankroll research and expansion into areas such as low-power chips, emerging markets and cloud computing next year.
In late September AMD, a distant second to Intel in selling microprocessors that are the brains of PCs, warned of manufacturing problems manufacturing it new 32 nanometer Llano chips as well as older 45 nanometer chips.
Last week Read said AMD and its manufacturing partner GlobalFoundries were making progress but that more work was needed to improve AMD's execution.
Like Intel, AMD has failed to gain traction in increasingly popular mobile gadgets like Google Inc's Android smartphones and Apple Inc's iPad, which some people are buying instead of laptops.
I have a feeling the layoff will be coming soon for the rest of the companies too.
The market is liken to a bear rally, where it could quickly fizzle out.
Keep posted on my next post of an interesting chart that i found :P
Interesting news, this affects AMD globally (Penang specifically)?
Penang has an AMD? I thought it closed down for some time along with Spansion.
The layoff should be global. Looks like alot of big guns are being lay-off to inject new blood.
http://www.brightsideofnews.com/news/2011/11/3/exclusive-letter-from-amd-ceo-rory-read-to-the-company.aspx
I think it still operating, I see recent hiring here http://www.jobstreet.com.my/jobs/2011/10/a/10/1461469.htm?fr=c