AMD Cuts Jobs After Low Earnings

Chip-maker Advanced Micro Devices (AMD) said yesterday that it would cut 10 percent of its work force, or about 1,680 jobs after giving a first-quarter revenue estimate below expectations. Citing lower-than-expected sales across its business, AMD estimated revenue for the quarter ended March 29 at about $1.5 billion, well below the average analyst forecast of $1.62 billion. "Demand is weak because of the economy. And then there's some (market) share loss that has contributed to the greater-than-expected shortfall," said analyst Ashok Kumar of CRT Capital Group, adding that analysts had expected a 7 percent sequential drop in revenue.

"We have a cost structure that we need to reduce due to lower revenue expectations, which are occurring in uncertain market conditions," said AMD spokesman Drew Prairie. However, Intel has not been immune to these problems. The company issued its own warning about the first quarter recently, cutting its gross margin forecast due to weaker pricing for NAND memory chips used in consumer electronics, such as digital music players and cell phones.

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ATI does not suck either. In fact I prefer their cards, they use new technology than Nvidia does, and support all the latest standards. Something you can't say about their competition.

Some of you are just plain idiots. AMD does NOT suck.

You act like they can just wave a magic wand and make a faster cpu appear. Attitudes like yours are going to kill AMD, and then you will be crying tears when you go to pay for your arm and a leg Intel cpu. I can guarantee it.

It is true that AMD doesn't suck, it is also true that Intel Processors currently perform better than the AMD counterparts. I'm all for competition, but I'm not going to buy an AMD processor at this moment in time when a better performing Intel equivalent exists for around the same price.

I'm a consumer, I buy what's best for me, not whats best for everyone else. In fact, if that were true for anyone, we'd all be buying fair trade coffee and cycling to work, yet we continue to buy Nescafe and drive SUV's, but that's a different argument entirely.

(TC17 said @ #6)
Some of you are just plain idiots. AMD does NOT suck.

You act like they can just wave a magic wand and make a faster cpu appear. Attitudes like yours are going to kill AMD, and then you will be crying tears when you go to pay for your arm and a leg Intel cpu. I can guarantee it.

Right now they suck. 6 months ago they sucked. 12 months ago they sucked. Pretty much for the last 2 years they've sucked and been sucking more. I know what the industry is like, one company produces a great chip, then a few months later another beats it, but that hasn't happened here - AMD just can't compete on any level.

(mocax said @ #5)
Can they un-buy ATI?
Like make ATI its own company again.

They could spin it off and create a new company.

Its what you get for buying a company that has a completely different culture than your own - its happened time and time again.

(bbfc_uk said @ #5.1)

They could spin it off and create a new company.

Its what you get for buying a company that has a completely different culture than your own - its happened time and time again.


Yup. One example that I see as a mistake is Microsoft is trying to buy Yahoo. The timing is wrong. Microsoft buying Yahoo is a good thing but I see that since the market is so shady, I think Microsoft will lose the market to Linux if Microsoft still procede to buy Yahoo.

(Krome said @ #5.2)

Yup. One example that I see as a mistake is Microsoft is trying to buy Yahoo. The timing is wrong. Microsoft buying Yahoo is a good thing but I see that since the market is so shady, I think Microsoft will lose the market to Linux if Microsoft still procede to buy Yahoo.

hmm...Microsoft will lose the market to linux? MS has over 90% of OS share...buying Yahoo may have an impact...but all together they will overcome make profit within 2 yrs..They have huge cash flow!!

Queue all the morons who think "LOLOLOL AMD IS DEAD LOLOL INTEL PWNZ OMG" is a great thing.

Until they realize having no competition brings us back to the 80's on the CPU market. Ah the sweet 80s, some of us were there to witness Intel giving users the lube and telling everyone to bend over.

(daPhoenix said @ #4)
Queue all the morons who think "LOLOLOL AMD IS DEAD LOLOL INTEL PWNZ OMG" is a great thing.

Until they realize having no competition brings us back to the 80's on the CPU market. Ah the sweet 80s, some of us were there to witness Intel giving users the lube and telling everyone to bend over.


What's this?

Someone with a memory that isn't equal to that of a goldfish?

It's refreshing to see some actual intelligence on this subject for once.

I think one difference from the 80's is that we don't have the same need for faster CPU's today, at least not the average user that plays WoW at best. I use an Athlon XP 1700+ at work, for example. It's clearly good enough for development, testing, Office apps, web browsing, even playing videos and listening to web radio.

(CyberWolf said @ #2)
Uncertain Market Conditions = Intel C2D is kicking our ass!

Dont worry AMD has their patent department looking over thousands of processor related patents that others own so they can fun their sueing of intel over them to slow them down... oh and if that doesnt work... they will claim they can't compete against a monopoly

Take the hint, AMD, START ****ING COMPETING AGAIN.

I used to love AMD. Hell, I used to be an AMD fanboy. This was about 4 years ago when the best Intel had to offer was an expensive, hot (temperature-wise) P4 that barely got them 30% towards their "10Ghz" promise.
Back then, AMD knew the score, AMD made the fastest, cheapest, coolest, most cost-effective processors in pretty much all 3 of the big markets.
Now they just suck. There's no easy way to put it, they just plain suck.