AMD of Q1 results, announces layoffs
Chipset maked maker AMD yesterday issued a press-release with their Q1 financial results ending on march 29th. Though things are picking up, $1.5 billion revenue (22% increase compared to Q1 2007), it's still down 15% compared to the Q4 2007 and this will now have it's toll on employees as the company plans to reduce its workforce by 10% before the end of Q3. This means that roughly 1,500 employees will lose their jobs. The full results of Q1 are expected on April 17.
The job cuts are a necessary move to help lift AMD from the negative spiral in terms of financial performance.
AMD (NYSE: AMD) today announced that it expects revenue for the first quarter ended March 29, 2008 to be approximately $1.5 billion, a 22 percent increase compared to the first quarter of 2007, and down 15 percent compared to the fourth quarter of 2007. The decrease is due to lower than expected sales across all business segments. AMD had previously anticipated first quarter revenue to decline in line with seasonality.
In addition, AMD announced plans to adjust its cost structure by reducing its workforce by approximately 10 percent by the end of the third quarter of 2008. As a result of these reductions, AMD expects to record a restructuring charge in the second quarter of 2008. At the time of this release, AMD is unable to determine the estimated amount of the charge as the details are still being finalized.