AMD outlines cost cutting

AMD has revealed further details of its restructuring plan following the release of its quarterly results.

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By  Administrator Published  April 26, 2007

AMD has revealed further details of its restructuring plan following the release of its quarterly results.

Reporting a Q1 net loss of US$611million on revenues of US$1.23 billion - down 30% on the previous quarter and 7% year-on-year - AMD executives last week said during a conference call that the vendor's staffing plans would be "reassessed".

"We're reassessing our overall staffing plans. Specifically, we're going to limit ourselves solely to critical hires, and to the extent that we add resources, we'll focus primarily on doing so in lower cost geographies," Dirk Meyer, AMD president and CEO, told analysts.

Meyer said there would be "some significant adjustments to its business model".

In addition to the staff review, executives said the company would simplify its sales and marketing teams, restore its value proposition in the channel and renew its focus on gaining new customers and expanding its portfolio with existing customers.

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