AMD Axing More Jobs Than Planned

It looks as though AMD will be cutting more jobs than previously expected. The company now expects to lay off 600 employees instead of the previously reported 500 and plans further cost-cutting actions during the first half of next year.

In addition, AMD reiterated that it expects to take further cost-cutting actions during the first half of next year, which will lead to additional charges against earnings. And the struggling company said it can't yet put a value on a planned goodwill impairment charge related to its 2006 acquisition of graphics chip maker ATI Technologies Inc.

shrugs shoulders.

Come on AMD, produce something innovative

AMD - Bankrupt by summer 09...

Those extra 100 were probably only doing work anyways. Let them go. Out! Now!

Ugh, just don't go under. As much as I love their products, the last thing we need is a world where the mid to high end is only defined by Intel and nVidia. If that happens, hello high prices with snail's pace advances in performance.

Back when AMD held the performance crown in the CPU market they also had some astronomical prices on their hardware... And I was one of the proud owners who forked out much for my good ol' AMD FX-53 may it rest in pieces....

Moral of the story... A world with no competition is a world full of less advancement and insane prices... It doesn't matter who the companies are...

So, does anyone believe that an investor on the scale of Dubai Inc. would frivolously throw Billions into the wind if it thought there was no future for AMD? That's some pretty heavy weight backing. You'd have to be pretty naive to think those guys don't have the inside scoop on what the future will look like for both the industry and for AMD.

Originally Posted by flippin_waffles

So, does anyone believe that an investor on the scale of Dubai Inc. would frivolously throw Billions into the wind if it thought there was no future for AMD? That's some pretty heavy weight backing. You'd have to be pretty naive to think those guys don't have the inside scoop on what the future will look like for both the industry and for AMD.

I'm not arguing against this specific example, but to say that major financial backers don't lose their shirts every day on bad investments is just wrong. Bad trades are made all the time. Warren Buffet, arguably the greatest living investor right now, is in the hole for billions based on investments he made in the financial sector well before it crashed earlier this year (what happened in September and October is further insult to injury).

Nobody can predict the future. Speculative plays like this are just that, speculative. Is it possible that he's buying AMD at bargain prices over the long term? Certainly. Is it possible that AMD might become even more irrelevant and continue to bleed money on their balance sheets? Certainly. The thing to note is that major investors generally don't throw all of their cash into one pot. If one investment succeeds as spectacularly as one fails, it all works out. Oh course, the reason to take on high risk investments like this is the potential for high returns. I guarantee that this investment in AMD is one among many in their portfolio, and is likely in their "high risk" column.

Yes, but his isn't just a simple investment. Far from it. They commited long term here, and are fitting Fab 38 very rapidly; have a variety of process nodes available in the near future; and are about to start building Fab 4x. Do you think they plan to fill that capacity with Intel chips? Looks to me like they are setting up for some major supplies to fill.

If AMD launches a major markteting push along side Deneb, demand could spike pretty quickly. No idea if they will, but that would certainly be a good scenario.

Originally Posted by flippin_waffles

Yes, but his isn't just a simple investment. Far from it. They commited long term here, and are fitting Fab 38 very rapidly; have a variety of process nodes available in the near future; and are about to start building Fab 4x. Do you think they plan to fill that capacity with Intel chips? Looks to me like they are setting up for some major supplies to fill.

If AMD launches a major markteting push along side Deneb, demand could spike pretty quickly. No idea if they will, but that would certainly be a good scenario.

I'm just wondering, do you have stock in AMD?


You're very optimistic

Originally Posted by flippin_waffles

Yes, but his isn't just a simple investment. Far from it. They commited long term here, and are fitting Fab 38 very rapidly; have a variety of process nodes available in the near future; and are about to start building Fab 4x. Do you think they plan to fill that capacity with Intel chips? Looks to me like they are setting up for some major supplies to fill.

If AMD launches a major markteting push along side Deneb, demand could spike pretty quickly. No idea if they will, but that would certainly be a good scenario.

Oh, of course, I just wanted to make it clear that it happening doesn't automatically make it a "sure thing". Scenarios that were supposedly "sure things" have failed and crashed harder than some of the worst case scenarios we can see for AMD.

Originally Posted by J32P

I'm just wondering, do you have stock in AMD?

LOL

I just read and laugh now. 9 straight quarters of terrible losses and the true believers still can't accept reality. AMD will emerge smaller and more vulnerable, not some powerhouse. It's practically giving away 2/3 ownership of the fabs and 2012 isn't getting any farther away. In about 3 weeks we're going to see what happens when things go from pretty bad to much worse, sorry Hector's pipe dream.

Originally Posted by J32P

I'm just wondering, do you have stock in AMD?


You're very optimistic

Dang, I wanted to go there but I'm too nice.

$40 to $2 in under three years, nasty.

Well I can tell you one thing. All your endless bashing and cheerful prayers to see AMD go BK will remain unanswered, so you might as well come to terms with that reality.

Originally Posted by flippin_waffles

Well I can tell you one thing. All your endless bashing and cheerful prayers to see AMD go BK will remain unanswered, so you might as well come to terms with that reality.

I don't think anybody wants to see AMD go bankrupt. I think everybody here agrees that competition between AMD and Intel/Nvidia is what will continue to drive faster products at lower prices. Nobody wants a repeat of 2007 when GPUs stagnated in price and performance because ATI couldn't bring a decent card to market.

However, the idea that there will be a return to the glory days of 1999-2005 is... far-fetched.

Originally Posted by Serpico

I don't think anybody wants to see AMD go bankrupt. I think everybody here agrees that competition between AMD and Intel/Nvidia is what will continue to drive faster products at lower prices. Nobody wants a repeat of 2007 when GPUs stagnated in price and performance because ATI couldn't bring a decent card to market.

However, the idea that there will be a return to the glory days of 1999-2005 is... far-fetched.

I second this and I am sure everyone that posted here does as well... Having both companies actively competing with each other is exactly why we have great prices now. It's not because of AMD or because of Intel it's because of them both being in competition with each other.

In all honest the grass is not greener on either side BUT it would definitely be a dead patch of grass if one company would go bankrupt.

Odd that people want to see any company go BK as that means people like themselves lose their jobs and livelyhood and the overall economy suffers. People that desire such things to occur are either or a combination of: 1) Sick/disturbed; 2) Don't care about the economy or people. 3) Are very greedy and have stock with a competiotr of a firm that could go BK. 4) Desire higher prices for various reasons and/or do not care how high prices rise for various reasons. 5) Etc.

Happy New Year!!!! Chris

I must be missing something here. I don't see anyone in this thread wanting AMD to flat-line. except possibly Myg. Which could be an opinion based on common sense.

I think all the other comments were aimed towards AMD not doing good at all, which is fact. That doesn't mean we want them to go away. Please refer to the second post in this thread for my opinion.

Why nVidia could make Billions before while they are only selling GPUs and chipsets? Why can't AMD do the same right now since they are eating away the market share from nVidia in the discrete GPU market and also notebook graphics. nVidia is also losing the chipset business to Intel.

HAHAHAHA!