AMD to cut workforce by 10%
Hardware manufacturer to lay off 1600 staff as it lowers Q1 2008 income by USD 100 million
AMD has announced plans to cut its workforce by around 10 per cent, meaning the loss of approximately 1600 jobs, following a reduction in the estimated first quarter performance.
The company had previously expected to earn around USD 1.6 billion but it's looking more likely to come in at USD 1.5 billion when its results are announced next week, according to Ars Technica.
While that still represents a 22 per cent increase year-on-year, it's 15 per cent down on the last quarter of 2007.
The new ATI HD 3000 series of graphics cards, combined with a price cut on the Radeon HD 3850 and 3870, weren't enough to stimulate sales sufficiently to meet expectation.
The company is currently working on a new 45nm processor codenamed Shanghai, which it hopes will return the company to profitability, and offer a compelling response to Intel's market domination.