[Rumour] AMD to cut jobs in Q1 2010

Fudzilla reports that “industry sources” are confident AMD is preparing to cut “a lot of jobs” in Q1 2010. This follows in the wake of significant cutbacks in European operations in late 2008 and 2009.

After suffering several quarters of losses, AMD finally posted a net income in Q3 ’09, albeit only the AMD Product Company (considering Globalfoundries as well, a loss was still reported).

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Fudzilla reports that “industry sources” are confident AMD is preparing
to cut “a lot of jobs” in Q1 2010. This follows in the wake of
significant cutbacks in European operations in late 2008 and 2009.

After suffering several quarters of losses, AMD finally posted a net
income in Q3 ’09, albeit only the AMD Product Company (considering
Globalfoundries as well, a loss was still reported).

AMD Chief Executive Dirk Meyer had previously stated that AMD expects to become profitable again in Q4 ’09.

For this quarter, AMD have the most promising product line up in a while. On the CPU front, though AMD is restricted to the <$200 entry level segment, AMD CPUs are consistently outperforming Intel rivals on price/performance. As for GPU, the Radeon HD 5000 series is virtually without competition as Nvidia’s Fermi only releases at the very end of the quarter, at earliest. However, AMD are still struggling with getting enough HD 5800 cards out to meet the demand.

Unfortunately for AMD, as we have seen in the past, offering better products at better prices does not always mean better sales. AMD have to fight against the mighty marketing departments of Intel and even Nvidia.

In the CPU arena, AMD will once again be shut out from the high margin performance segments, restricted to the entry level / mainstream markets through much of 2010. It will be a difficult year. 2011 might be the year where things turn around for AMD as next gen architecture Bulldozer and Fusion are set to hit stores. Rumours suggest delays, but AMD have made it a habit to release products on time or before time ever since the much delayed and troubled Barcelona launch.

Reference: Fudzilla

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