AMD has been struggling and much of it is because of bad execution and sitting on the laurels when it was winning in the CPU race. AMD's financial woes featuring huge debt after ATI buy continues and in this hard time they do like corporates always do. But in AMD style of bad names, they released a new processerr called GoHome'on and like 'Athlon and Duron', its not going to be met well by the markets. Its basically a product to ask employees to leave the job and "Go Home!!"
AMD expects revenues for the quarter ending March 29 to drop approximately 15 per cent drop from previous quarter but up 22 per cent over 1Q 2007. Generally Q1 is not the best time for microprocessor business, but this story is longer than that... AMD has been struggling with the performance and Intel has been executing better than ever.
AMD announced that it will layoff about 10% of its current workforce starting mid-April and finish the entire procedure by Q3. This means after the exercise finishes, 1,650 AMD employees will be doing something else. The markets haven't taken the news well and AMD is down by more than 4%. In the meanwhile, Hector is still on the hotseat trying to convince it'll be good someday and his expected successor Dirk Mayer is optimistic.
AMD just a week ago was saying that the layoffs are rumours. And today it confirms that there will be layoffs. The financial results will be out on the 17th of April and probably the layoffs are to promise some expenditure cuts on AMD's part... Hopefully, we aren't loosing some good chip designer who would have created something to fight Intel... Or else we will see AMD just limping around behind Intel!!