Struggling AMD Cuts 500 Employees In Cost Saving Measure
The last official count from AMD had the company employing 9,469 workers. According to Bloomberg, the forthcoming layoffs are part of a restructuring plan. AMD is looking to streamline its multi-faceted operations and cut costs as it continues to lose market share to rival
On its next financial report, AMD will record charges of around $42 million associated with the restructuring effort and job cuts. AMD expects the reduced headcount will save the firm around $9 million through the last two quarters of the year, and about $58 million through all of 2016. The company has generated close to $2 billion in the first two quarters of 2015.
In its most recent financial report, AMD CEO Dr. Lisa Su noted "near-term challenges" in the company's "PC processor business due to lower than expected consumer demand that impacted sales to OEMs."
More recently, AMD split its graphics division into a newly formed Radeon Technologies Group, which operates under the helm of Raja Koduri, who is a veteran in the graphics sector. The move could result in some interesting things from AMD, though it's a long-term play.