AMD to cut 7% of workforce after iffy sales forecast | PCGamesN

AMD to cut 7% of workforce after iffy sales forecast

AMD

PC gamers’ appetite for new hardware may never wane, but it’s a tricky business to be in. AMD plan to let go of more than 700 staff to offset declining revenues at the graphics manufacturer.

AMD had about 10,100 employees at last count. The company expect to cut 710 jobs by Christmas, and hope the job losses will make them savings of about $85 million next year.

AMD told shareholders that revenue will tumble as far as 16% from the $1.43 billion recorded at the end of September.

The manufacturer replaced CEO Rory Read with chief operating officer Lisa Su last week, and plans to restructure the company around the new layoffs. Bloomberg report that AMD are losing out to Intel, who are encroaching on one of AMD’s favourite markets - processors for low-end laptops.

AMD now have chips in all three consoles - but Nvidia are competing very competitively indeed on the PC, and Intel still supply CPUs for a large majority of machines.

It’s worth remembering that PC sales declined at their fastest rate ever in the first three months of 2013. Things weren’t quite so grim a year ago, but the industry is expecting to see a decline in worldwide shipments this year.

Do you have an AMD card clattering about your PC?

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Shriven avatarVixremento avatarBelimawr avatar
Shriven Avatar
3486
3 Years ago

Certainly appears Nvidia are wiping the floorr with them atm. Yet, im sure that console deal pays well and doesnt require much R&D.

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Vixremento Avatar
91
3 Years ago

Aye that's what also made me first think "hey?". They struck quite a deal with the current (next gen) consoles (surely?) so to think that the PC market is affecting them so much comes as quite the shock but I'm probably not looking at the bigger picture (one things for sure, I'm unlikely to buy an AMD processor anytime soon mostly because I'm happy with Intel; I've just been burnt (well cooked some eggs) with their past hardware too many times in the past...).

Anyway the reasoning behind it all is above my pay grade and in the end I want them to keep going because I believe that competition is good for many many reasons.

4
Belimawr Avatar
1276
3 Years ago

there is quite a bit of R&D in the consoles, it's part of why there is a fair size difference in processing power (not just because of the GDDR5) the PS4 actually has more stream processors and higher clocks, both chips while built on the AMD Jaguar but they are very different to to the standard chips, for starters the standard APU's don't have comparable graphics to the AMD 7850/7870 so they are quite a bit different.

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as for the price AMD is getting, they got it because the console manufacturers said Nvidia was too expensive more so with having to buy a separate CPU since Intel on chip also wasn't capable of similar power. so chances are AMD isn't walking away with a massive amount since they will have undercut Intel and Nvidia.

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so considering Sony claim to be selling close to manufacturing cost and the retail price of the top end APU's is generally £100+ it does give a lot of money to spare considering how much the 8gig GDDR5 and other components will have cost. so to be honest I wouldn't be surprised if AMD is actually making very little from the consoles but taking it as a somewhat guaranteed income for the next few years, as even if they only made £10 a console, if 60 million of each console sold over 8 years, they would still make one billion eight hundred million over the 8 years, so it would still be a fairly good money spinner for a long term.

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AMD's problem is they have dropped out of the high end CPU race after finding out more cores will never beat Intel's architecture, so all you can hope is they have something going on behind closed doors and can come back out swinging as a two party (or more) race is needed to keep innovation going forward, as if Intel was left to run alone they would have little reason to innovate and push limits.

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the same is true for for the graphics card market, Nvidia should never be left to run alone, all we can hope as I said is AMD is working behind the scenes and is going to come out swinging.

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