AMD swings jobs axe

By Alun Williams

Posted on 15 Nov 2002 at 12:54

Cost cutting measures have lead struggling AMD to shed approximately 2,000 jobs worldwide. This represents 15 per cent of its workforce.

AMD is hoping the move will save $350m and help it move towards profitability again in 2003.

'As part of our ongoing strategy, we are taking decisive measures to reduce operating and capital expenditures,' said AMD President and CEO Hector Ruiz in an official company statement. 'One of those measures is a reduction in work force. While painful and unfortunate, today's action will help to position AMD so that we can take full advantage of the eventual market recovery.'

He said the move was a prelude to 'unleashing a number of intensely competitive products and solutions to the marketplace that will enable us to compete in segments of the market where we have not yet been before.'

The reductions will affect AMD operations in Europe, as well as the United States and Asia.

These developments were signposted last month with disappointing quarterly results. Robert J. Rivet, AMD's chief financial officer, asserted that the company had made aggressive moves to 'align our product mix with current customer and end-user demand'. And he promised: 'We are accelerating our strategy to reset our business model and lower our corporate breakeven point.' As we pointed out, this strongly suggested another round of cutbacks.

AMD makes microprocessors, such as the Athlon XP, and Flash memory and communication support products.