This page has been archived and commenting is disabled.

Just In Time For NFP Friday, AMD Announces It Is Slashing 10% Of Its Workforce

Tyler Durden's picture





 

When it comes to the almighty corporation, employees are naturally expendable. Sure enough AMD is all too aware of this, per AP: "Advanced Micro Devices says it is cutting 10 percent of its workforce amid weak PC market. The chip-maker made the announcement Thursday after the market closed. Advanced Micro Devices Inc. says the cuts should help the company save $10 million in the fourth quarter and $118 million next year. The layoffs are expected to be finished by the end of the first quarter of 2012." From the company's 10K: "As of December 25, 2010, we had approximately 11,100 employees." Of course, in Banana America, this means tomorrow's NFP number will be a massive beat.

Carry on.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 11/03/2011 - 16:38 | Link to Comment nope-1004
nope-1004's picture

It's a tech bubble.

No wait, housing bubble.

No, a credit bubble.

 

Oh shit... forget it.  It's obviously the End-of-Western-Keynesian-Economics bubble.

 

Thu, 11/03/2011 - 16:39 | Link to Comment Pladizow
Pladizow's picture

But they have sooooo much cash!!!!!!!

Thu, 11/03/2011 - 17:10 | Link to Comment Hephasteus
Hephasteus's picture

No they don't. They have so much cash equivalents that if you put them on the free market would turn into pennies on the dollar equivalents. It's a mind fuck. Microsoft is worth 70 slash that 55 billion. As long as you don't try to sell it for that. By the time you got done selling stock it would be worth about 10 billion.

It's fractional reserve system. Nobody gives a shit about assets and liabilities. All they care about are cash flows. Earnings in case of corporate business and taxes in case of corporate governence. They care about stock prices because those affect their ability to get money through the credit markets using the stockholders as unsecured creditors. The problem is the system has transformed the unsecured creditors from people you can wipe to people you can't as they've gone from citizens to government employee 401k investments.

Since the system has only cared about cash flow for so long they keep pumping cash into things that don't pay off. They got secret weapons that cost trillions that are totally fucking useless. They got scientific and technological projects that go nowhere. You have any idea how much money has been pumped into rfid and it just doesn't fucking work. It's too easily detected too easily hacked too easily destroyed too easily every fucking thing on the planet.

Earnings are all faked in every industry. AMD is about the only chip maker on the planet that doesn't fudge it's books. They still play the game though and aren't trustworthy in some respects but their numbers are just about as real as it gets.

Cash to computer industry is licensing fees that are put on books as cash and cash equivalents but who's future income potential is wildly exagerated. Software companies have franchise software on books at 20 million this or 200 million that when there's absolutely no way those franchises will ever make those numbers mark to market.

AMD can't go bankrupt they are too much of the market but they could be put in restructuring that would make them chase markets they don't fucking care about. So they are being pressured and fingered to get into that position. So the board can force them into the bullshit phone system on a chip ultramobile computing market that AMD knows is nothing but a decent market that will run up against a growth wall and then slowly shrink forever.

 

Thu, 11/03/2011 - 17:36 | Link to Comment 11b40
11b40's picture

Most excellent.  Let me just add, "decent market that will run up against a growth wall and then SHARE AND MARGINS WILL slowly shrink forever.

 

Thu, 11/03/2011 - 19:38 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

AMD is one of the worst run semiconductor businesses out there. I used to work for their worthless spin-off Spansion. They hire 3 people to do the job of 1. AMD even has top quality products which they squander. Blow massive chances against Intel to gain market share. Their days are numbered.

Thu, 11/03/2011 - 21:21 | Link to Comment A Broken Bear
A Broken Bear's picture

Yep, the cuts are in direct response to the release of their new Bulldozer Chipset. It Failed, their new tech still cant beat Intel's old tech so I am sure sales have dissapointed.

 

AMD however claims Bulldozer is future tech and cant be properly benchmarked yet. Sounds like a bit of a blah blah excuse though

Fri, 11/04/2011 - 04:55 | Link to Comment Hephasteus
Hephasteus's picture

Complete and total utter fucking trash talk. Intel is no further advanced over amd than meaninlessness is advanced over bullcrap marketing. AMD chips run some instructions much better than intel and intel's run some instructions much better than AMD and intel benches only what they are good at and displays it against only what AMD isn't good at. When I say isn't good, I don't mean can't do, I mean don't give a shit. Because they build chips for workloads and don't care if their chip can eat workloads that don't mean shit.

The problem AMD is facing is the yes the management did fucking screw up. They got their hands on some damn good talent that was laying down circuits by hand and making damn good chips. Then they went and tried to treat them like shit and replace them with script and cut and paste monkeys and "computer aided" engineers.

It's the same problem with every damn part of computer industry. All the game industry people are nothing but glue data structures from the companies codebase monkeys and every solvable problem has been solved and fleshed out and it's reached a complexity model where it requires 10x the problem solving ability to get .1x the output.

AMD is likely cutting because they don't have access to bullshit nwo funds and they have to. Intel is making up profits expending enormous amounts of money on r&d which will net gains of you gotta keep spending enormous amounts of money for years you dump fucks.

AMD tries to do what it can with what's it's got. Intel tries to make shit it can't make sucessfully and keeps trying till it get's lucky.

But bottom line is it's fucking OVER. 65nm was the last easy node. 32nm is the last super hard node. Those are all ratios of the source light they use to mask 135nm.

28nm was supposed to be rolled on easy stuff in 4th quarter 2010. It's 4th quarter 2011 and all they can make with it is tiny ass 3g and 4g phone chips and programable logic chips.

Bottom line is the model that they use for monetization and growth is broken and dead and it will transform and everybody will catch up.

Now all they do is talk trash about 14nm and walk around tired from getting their ass kicked daily by the end of nanotechnology. Because it's hard. Not regular keep trying hard. The roof beams are sagging, people are exhausted and burned out kind of hard.

There is no damn asian market and there never was. China makes mips chips and that's what they are going to make and use. India will dump the western ties and make thier own damn technology at some point too. Japan is dying and south korea has 20 million people and thats about how many people are in australia as well. The west is broke and the 40 and 60 million computers a year is a bunch of crap. And there is no damn 100 million netbooks a year market and there never will be.

And they are lying through thier ass about everything. Foxconn is telling it's workers they will be replaced by robots when everything that can be efficiently automated about the business is done and everything that's a nightmare to automate is NOT going to be automated.

Thu, 11/03/2011 - 16:40 | Link to Comment Deadpool
Deadpool's picture

...wish I could post a picture of Mr. Bubble here...

Thu, 11/03/2011 - 16:38 | Link to Comment Long-John-Silver
Long-John-Silver's picture

The Cloud is killing the desk-top computer. All you really need now is a simple terminal like an Android or Apple Tablet.

Thu, 11/03/2011 - 16:42 | Link to Comment Manthong
Manthong's picture

Just remember though, the cloud is an information counterparty and subject to government intervention and controls.

Thu, 11/03/2011 - 19:41 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Just remember though, the cloud is an information counterparty and subject to government intervention and controls.

 

Companies will never put their digital data onto other supposed "secure" networks. The cloud is overrated.

Thu, 11/03/2011 - 20:34 | Link to Comment knukles
knukles's picture

Yorp... Or manipulation by private entities... like them buggers who sell books... and redacted all versions of Uncle Tom's Cabin

Redacted..... not as in on the new copies, buy on the ones already purchased and downloaded.  Vio-l-fucking-ah!  "Overnight", old version Gonzo-Alonzo and New and Improved More Politically Correct than the Last One Takes its Place.

You want security from whatvever Big Brother You Care to Name, keep a good olde fashioned paper copy.

Thu, 11/03/2011 - 16:43 | Link to Comment sabra1
sabra1's picture

good thing nobody, and no government could pry into your cloud account! perfectly safe, NOT!!!! 

Thu, 11/03/2011 - 16:55 | Link to Comment Hansel
Hansel's picture

Only for simple stuff.

Thu, 11/03/2011 - 16:39 | Link to Comment Deadpool
Deadpool's picture

AMD should slash 100%. what has AMD chips in it??

Thu, 11/03/2011 - 16:41 | Link to Comment FaithEqualsZero
FaithEqualsZero's picture

Great idea!, then Intel will be a monopoly and we can crush them as well. Sarc..off

Thu, 11/03/2011 - 16:46 | Link to Comment Deadpool
Deadpool's picture

80% market share is a monopoly in my book. Sarc...on

Thu, 11/03/2011 - 17:11 | Link to Comment Manthong
Manthong's picture

I like and use Intel but one of my best workstations is an AMD 6 core with AMD Radeon Graphics that spreads my charts over three 24 inch HD LED displays.

Good stuff.

Works for gamers, too. 

(Actually made for gamers, works for chartists, too.)

Thu, 11/03/2011 - 17:12 | Link to Comment Rynak
Rynak's picture

Marketshare in the x86 architecture, which is Satan Inside (Or is that "nataS edisnI"?) anyways..... but unfortunatelly has a "monopoly" on the desktop and server market.

Thu, 11/03/2011 - 16:57 | Link to Comment Hansel
Hansel's picture

I agree, they should slash 100%.  They are a computer company.  Why do they need humans anymore?

Thu, 11/03/2011 - 17:07 | Link to Comment mr.5280
mr.5280's picture

"What has AMD chips in it?"

AMD makes more than just CPUs.  So other than the 17% (and growing) share of the CPU market...  They own >40% of the graphics market (and claiming more fast as well)...  How about the first company to tie graphics into their CPU (Saving both space, power, and bettery life - which will do wonders for tablets some day)...

and the kicker...

What new Computer does not have >3gigs of RAM in it? Who developed 64bit and owns the patents and future rights?  Who licenses that to anyone else who wants to utilize 64bit?  Who will still own that when 64bit works on a tablet?  Who makes money from everyone else having to catch up? [if you do not know this already, to utilize >3gb RAM you need 64bit]

AMD.

I'm not a fanboi, but realistically they do have quite a bit going for them.  I've been following them for a few years, and they have definitely been growing over that time in mostly positive ways.  I would wager they are just trimming the fat.

Thu, 11/03/2011 - 16:40 | Link to Comment Irish66
Irish66's picture

You can't keep stacking product eventually you layoff or shut down.

Every company will be doing this

Thu, 11/03/2011 - 16:41 | Link to Comment Tsar Pointless
Tsar Pointless's picture

More job cuts. This has to be bullish, no? I mean, what's good for corporations is good for America - isn't that what we were told throughout the 1980s?

Here's how to play every NFP Friday from now until Chairman Ben actually unleashes the real QE3 upon us.

Better-than-expected: Rally, as we are in boom times again!

Worse-than-expected: Rally, as QE3 is more of a certainty!

In-line with expectations: Rally, because it wasn't worse-than-expected! In which case, if it were, we'd still rally, for the reason set forth above.

Thu, 11/03/2011 - 16:46 | Link to Comment lolmao500
lolmao500's picture

Unemployment down on this news of course.

Thu, 11/03/2011 - 18:15 | Link to Comment Eally Ucked
Eally Ucked's picture

Lets look at it from positive side, all those employees from AMD must be used to work in very strict quality and precision enviroment and after 2 weeks of retraining at gov agencies they will be very valuable and sought after employees in nail polishing industry.

Thu, 11/03/2011 - 16:48 | Link to Comment Cman5000
Cman5000's picture

Discount retailer Syms said Wednesday it will close all 46 of its stores trading under the Syms and Filene’s Basement names, reportedly eliminating 2,450 jobs.The U.S. Air Force announced today it was cutting 9,000 civilian jobs across the branch. TDK the world’s biggest maker of magnetic heads for disk drives, plans to cut about 12 percent of its workforce and sell its organic light-emitting diode display business, after profit plunged.About 11,000 jobs may be eliminated. Just a sample from the last few days ....

Thu, 11/03/2011 - 16:50 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Holey hell!

The S&P should jump to at least 1400 on that paragraph alone!

Bullish, I say!

Thu, 11/03/2011 - 16:51 | Link to Comment economessed
economessed's picture

Didn't Jobs pass away last month?

Thu, 11/03/2011 - 16:49 | Link to Comment Dr. Engali
Dr. Engali's picture

AMD still has a work force?

Thu, 11/03/2011 - 16:50 | Link to Comment Lady Heather...UNCLE
Lady Heather...UNCLE's picture

@Tsar Pointless...yeah mate, I know how you are feeling. It is a rigged market. Only PM's (buried 2 foot under the house) defeats the house

Thu, 11/03/2011 - 16:51 | Link to Comment lolmao500
lolmao500's picture

Well all my stuff if AMD. So...

Thu, 11/03/2011 - 21:19 | Link to Comment Conax
Conax's picture

I built this PC in '08 using all AMD chipsets and saved some money. It's 3.1 GHz cpu is just a dual core, yet it benchmarks as good or better than my son's more expensive quad intel chip. I have overclocked it to 3.4 without any drama. I looked to buy the same chip recently, and they are out of production. 3 years- aannnd they're gone. AMD makes fine chips, then drops production. Not stylish enough, only a dual core and all.

Thu, 11/03/2011 - 16:52 | Link to Comment the not so migh...
the not so mighty maximiza's picture

lack of new technology, intel is beating them good.

Thu, 11/03/2011 - 17:03 | Link to Comment earleflorida
earleflorida's picture

amd = better graphic architecture / cost effective pricing [now going, going, gone?]

jmo

shame - 'competition breeds success'

Thu, 11/03/2011 - 16:53 | Link to Comment PanGlossius
PanGlossius's picture

Watch the scam evolve! Tomorrow prints sub-9, smashes headlines. So much statistical manipulation its a number almost as useful as GDP. Go to NBER, pour through the municipal and regional report. Nothing but political deadweight to cover the lies, "happy days are here again..."

Thu, 11/03/2011 - 17:04 | Link to Comment Rynak
Rynak's picture

As if the speed of production (and thus quantity produced) had anything to do with workforce demand, when it comes to chips.

(Hint: When it comes to microchip plants, the amount of workforce-hours needed, depends on the amount of plants, not on the speed at which the plants run).

All they're doing, is slashing costs, not workhour demand. They'll make the remaining employees work more, or rehire cheaper ones, or a mix of both. Then again, from what i heard from a buddy, who has an AMD factory near his city, they've got experience in doing that.... the turnaround in that factory is ridiculous, firing and rehiring people at breakneck speed. That's not to say that intel is any better in that regard, i just don't have info about intel plants.

Thu, 11/03/2011 - 17:15 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

place your bets for freaky friday, BiCheZ!

[clothing optional]

Thu, 11/03/2011 - 18:21 | Link to Comment Bolweevil
Bolweevil's picture

No pants Friday, woot!

Thu, 11/03/2011 - 20:28 | Link to Comment fuu
fuu's picture

I bet prices will not be the same at close as they are at open.

[bathrobe representin']

Thu, 11/03/2011 - 17:50 | Link to Comment jmc8888
jmc8888's picture

I've bought AMD, I might buy in the future sometime from them. 

But they JUST came out with an 8 core processor that still has troubles beating a 3 year old 4 core, 8 thread i7 920 from Intel.   Especially when you take oc'ing into it. 

On the graphics side, Nvidia has better performance and tech this round (at a cost), though ATI has lower power requirements and lower heat.  ATI still has no answer to physx.  For now eyefinity is still niche.   The 6XXX series of chips is basically the same as 5XXX series.  Only real difference is the later 6xxx's have more than 1gb memory.  Most people should wait until the Unreal 4 engine comes out and get a single card that can run that well.   

Thus aside from everything else, AMD shouldn't be doing too well, and their Tonka truck Bulldozer line would have been good in 2008, or even 2009.  End of 2011 to finally catch up to a part someone could have bought from intel for 269-300 bucks way back then is pretty sad (hell some people got them on sale at times for around 230, and extreme sales even less than that). 

Glass-Steagall 

Thu, 11/03/2011 - 18:04 | Link to Comment spanish inquisition
spanish inquisition's picture

Gonna have to rename employment, it is getting to be a downer. How about..

We are reducing our analog bio unit inventory to lessen carrying costs...

Thu, 11/03/2011 - 20:53 | Link to Comment fuu
fuu's picture

How about the Efficiency Enjoyment Index? As corporations become more efficient by reducing overhead, workers are finally able to enjoy the reward of a less engaging work week.

Thu, 11/03/2011 - 18:23 | Link to Comment Bolweevil
Bolweevil's picture

Ha ha, thought the headline read ADP how funny would that be?

Thu, 11/03/2011 - 18:25 | Link to Comment nmewn
nmewn's picture

We are the 99 weekers.

Thu, 11/03/2011 - 19:46 | Link to Comment oklaboy
oklaboy's picture

better get ready, shit's hitting the fan 

Thu, 11/03/2011 - 20:26 | Link to Comment robertocarlos
robertocarlos's picture

I'm going to read Player Piano and try to figure this all out.

Thu, 11/03/2011 - 21:00 | Link to Comment robertocarlos
robertocarlos's picture

Would you rather be unemployed or on a future govt chain gang building roads by hand?

Do NOT follow this link or you will be banned from the site!