Advanced Micro Devices (AMD) is likely to cut up to 20 percent of its workforce of nearly 12,000 following a warning that quarterly revenue of the chipmaker is likely to fall lower, owing to a weak global economy, Reuters reported Friday.
Technology blogs CNET and All Things D reported that the job cuts could be to the tune of 20 per cent to 30 percent of workforce.
Apparently, AMD had disclosed a headcount of 11,100 in its 10K report filed in February.
Though AMD has refused to comment on the issue, sources familiar with the situation told All Things D that the job cut plans are likely to affect employees in the engineering and sales divisions, who were reportedly spared in the previous round of cuts.
Continue Reading Below
The sources also stated that the new job cuts would be quite deep that AMD may scale back some of its offerings.
The job cuts may be announced during the announcement of quarterly results Oct.18, or later on Oct.25, All Things D has added.
Apparently, AMD CEO Rory Read has brought in a team of business consultants from McKinsey and BCG to advise the company. While McKinsey is said to be closely involved in the layoffs process, BCG is working on a strategy to take the company forward, according to All Things D.
This is said to be second major reduction exercise undertaken ever since Read took over as CEO as the previous 10 percent reduction was announced November 2011.
The news of job cuts comes amidst senior executives relinquishing top posts in the company. Earlier, in September, CFO Thomas Seifert had resigned making him the 26th senior member to depart after Read, former executive at IBM and Lenovo took over as CEO, All Things D has pointed out.