Advanced Micro Devices, Inc.(NYSE:AMD) had had a down-sizing once when Rory Read had joined the chip-making company last year in August. Read is a former COO and President of Lenovo, and he had joined AMD as the CEO last year. The company had seen a cutting down of their workforce then.
This year too, the company has to cut down, and downsize in order to cope with the lack of earnings, as a result of lesser sales. The company, it is rumored, will be cutting off about thirty percent of the people employed in Advanced Micro Devices. The firm is struggling with its finances, and it will have to resort to the cutting down of about 20,000 to 30,000 of its total number of employees. Currently, there are about 11,100 people working for them. The company has had very low sales. They have been lower than it had been expected to be. The earnings forecasts have also been very low, as a result of which the company is compelled to let people go.
They might be letting people go from the engineering department, or from the sales department, sources have predicted. The company had to warn investors about the fact that the revenue for the third quarter has gone down by ten percent instead of the one percent, since the last quarter. The prediction had been one percent. This has forced the company to think of ways to cut down their costs in order to accommodate the financial losses. The third quarter results will be revealed through a conference call. If there are redundancies which have been made, then it will be on the anniversary of the cutting down of the workforce by AMD from the last time, when the jobs had to be cut down by ten percent.
The company might be announcing the job cutting on Thursday. The unofficial news has not gained any favours though, since the share value of the company has dropped. Shares of the company have fallen over 16% ever since it reported its earnings last Friday.