AMD decreases Q1 sales outlook, expects to cut workforce by 10%

It's one thing to put the kibosh on whispers of across-the-board layoffs; it's another to go and fire twice the amount rumored. Sure enough, a recent report from the AP notes that the California-based chipmaker is expecting to layoff 10-percent of its 16,000-person workforce by Q3 2008. Additionally, the outfit is trimming its sales outlook for Q1 due to "poor sales in all of its business segments," and as if that wasn't enough, it's expecting to "incur an [undisclosed] restructuring charge in the second quarter as a result of the layoffs." Ouch.

[Via The Street, thanks Aaron]

[Mikey C. @ Apr 7th 2008 9:08PM]

Engadget is being rated on TIME magazines first annual blog index. Support engadget and vote for them. Gizmodo is not even on the list!
http://www.time.com/time/specials/2007/0,28757,1725323,00.html

oh, and my heart goes out to you AMD. seriously, fight the good fight.

[giantenemycrab @ Apr 7th 2008 9:14PM]

Gizmodo's little TV-B-Gone stunt at CTIA really removed all of their credibility.

[Aguiluz @ Apr 7th 2008 9:56PM]

Actually, when I hopped over to Gizmodo a few minutes ago and for the first time, I swear I'm not going to visit it again. They feature blatant and distasteful language and over-usage of poop jokes which I find un-funny.

(Oh look! There's a toilet figurine with a large chunk of 5h1t on it! It's worthy of a post! -Gizmodo)

Plus, the comments are too formal. What makes Engadget in the lead are it's commenters. It's commenters like us that makes this site number 1!

(Oh, what a bunch of Deutche bags -Frun)

GIZMODO = BANNED on my router.

[Aguiluz @ Apr 7th 2008 9:59PM]

Just look what I mean:

http://gizmodo.com/377091/toilet-vacuum-sucks-up-all-the-crap-on-your-desk

"Except! There is a large piece of s*** floating in it when you lift the lid. And that's what makes it worth posting, really."

I'm sorry, but THEY ARE POOP CRAZED FREAKS!

[Jesse S @ Apr 7th 2008 10:00PM]

Yeah, the Giz has far too many Apple posts.

[catachip @ Apr 7th 2008 10:04PM]

@ Aguiluz

I agree completely.

I'd say, Gizmodo is like Fox News, whereas Engadget is like CNN - the only good old media comparison I can make. You know how Fox News (aka Fox "News") is like a tabloid magazine with flashy ads and no real substance?

By the way, the use of the word "shit" right on the main page is pretty pathetic, you're right. They are definitely catering to 14-18 yo males. Engadget, on the other hand, is definitely targeting the 18-24 male crowd, more likely to be in college. Like CNN, they tend to have a bit more class because they have a reputation to defend as the big guy, but, are not without their many faults (both CNN and Engadget). My 2 cents, anyway.

[Aguiluz @ Apr 7th 2008 10:10PM]

@Mikey C.

Did my part!
http://img441.imageshack.us/img441/5852/engvotesy6.jpg

@catachip

Yes, using offensives and vulgarities right on the main page is not acceptable for a responsible site.

[phanbouy @ Apr 7th 2008 10:31PM]

Gizmodo = Idiocracy

[LJKelley @ Apr 7th 2008 11:11PM]

Hate to burst your bubble but Gawker and LifeHacker are both on the list which are part of the network that includes Gizmodo. I'm happy you enjoy Engadget, as do I but no need to diss Gizmodo which I also like and has many great stories some of which Engadget has missed and vice versa. I also like the Consumerist, which is also part of Gawker Media.

[iofthestorm @ Apr 7th 2008 11:52PM]

Wow, the jackasses at Time put slashdot in the poll for most overrated blog. Slashdot is where real geeks hang out and talk about technical stuff, whereas blogs like this are (no offense) intended for more pseudogeeks and less technical discussion on random stuff.

[iofthestorm @ Apr 7th 2008 11:55PM]

Wow, OK, they truly are idiotic. They put Ars in the overrated category as well? Just because they know how to actually write real, thorough, balanced reviews doesn't mean they're overrated.

[pavoro @ Apr 7th 2008 9:15PM]

Anyone surprised?

[phanbouy @ Apr 7th 2008 9:16PM]

AMD: You can do it!

/Waterboy

[Wwhat @ Apr 7th 2008 9:17PM]

If they fire enough people maybe they accidentally fire the guy that's been jinxing them too!

[clak @ Apr 7th 2008 9:19PM]

NOOOOOOOO!!!! Oh, I just remembered. I have a Mac. Carry on.

[Dustin Frazier @ Apr 7th 2008 10:21PM]

I'm sorry?

[iofthestorm @ Apr 7th 2008 11:49PM]

Troll moar plx?

[Rynth @ Apr 8th 2008 4:38AM]

@ Dustin

So you should be sorry! ? This poor guy we're replying to has a Mac! Zomg, who'd've thunk it.. a whole Mac, all to himself..

Yay....

[/sarcasm]

[culbeda @ Apr 7th 2008 9:23PM]

While AMD has weathered a few storms in the past and will probably survive, I don't look forward to 3-5 years of Intel demanding their own prices for processors. I've been there and it was a very sad time for computing.

[phanbouy @ Apr 7th 2008 9:28PM]

look at the stunts they're pulling w/45nm chips right now. cmon AMD! hey... hope those layoffs include execs and middle managers instead of engineers and developers (developers, developers)!

[phanbouy @ Apr 7th 2008 10:30PM]

er... look at intel's stunts on the 45nm that is

[Rob @ Apr 7th 2008 9:32PM]

Translation: we're sending all these jobs, previously held in the U.S., to India. And, we're giving our executive generous bonus, for no reason other than for coming up with the "best" solution to our financial challenges; fire the guys at the bottom, the ones that actually know what's really going on.

[apeguero @ Apr 7th 2008 11:14PM]

You're so right. It's more than likely what they'll do. I only wonder how much longer it will take until outsourcing to India and China completely breaks our economy (yeah, worse than now). It sucks. I also wonder if, perhaps, AMD bit more than they could chew when they bought ATI. If this had something to do with AMD having such hard times then all I can say is, just another example of mergers and acquisitions f'ing up the economy. Take notice Microsoft. BSX > Guidant, Citibank > Travelers, Ford > Jaguar...Come on guys, give me some more examples of mergers and acquisitions not going as planned...

[retro77 @ Apr 7th 2008 9:36PM]

Seems to be a growing trend in the industry lately.

[bretticus @ Apr 7th 2008 9:45PM]

I am a developer and feel bad for anyone who loses his or her job. However, if AMD tanks we can all expect to pay double for CPUs in the future. I just bought a dual core athlon. No, not as good as an Intel. But about one third the cost and good enough! We all ought to take advantage of buying a cheap AMD chip and build that HTPC we've been meaning to get up and running. Just add a cheap AMD 780G board and you've got an excellent, green, cheap HTPC!

[OddManOut @ Apr 7th 2008 10:55PM]

Agreed. Short of gaming or high end PS or other graphic design type stuff X2s are more than enough power for the desktop. I recently upgraded my primary (though not my powerhouse) system with a $35 Abit mobo, a $95 4800+, and 2gb of PC-6400 @ $24. Slim line case for $50, DVD burner for $35. $239 for a whole system (minus KB/mouse/display of course, but the mobo had integrated graphics). Not the fastest in the world, but more than enough for casual use.

AMD was smart before, they dropped CISC and went with RISC at the right time, went with DDR over RDRAM (which was a good business decision even though RDRAM is technically superior), kept their 64bit cpus 32bit and x86 compatible and a couple other things that Intel screwed up. They showed a fair amount of creativity in doing so. Welp...Intel's cleaned up their act now, Core2 is a great piece of work, and with 4 of them on a DIE, you can't be beat. AMDs the one with a rep to live down now, but I think they have the potential to be as successful as Intel has ben in the last 2 years. Phenom might not have put them back on top, but their 'Fusio' approach has me interested...

And yeah, competition is good in and of itself. Here's hoping for good chips and low prices for years to come from BOTH camps.

[Yevon @ Apr 7th 2008 9:56PM]

I blame the economy. And by "economy" I mean, of course, Bush.

[Chuck @ Apr 7th 2008 10:05PM]

He he, good one.

[Justin @ Apr 7th 2008 10:01PM]

How else here gets to vote for the new director?

[catachip @ Apr 7th 2008 10:13PM]

I guess that is what happens when you drop the ball and stop producing quality products as your competitor ramps up faster and cheaper chips. I remember the days of my AMD-K6 at 300 Mhz. That thing was a beast. Then got a laptop with an AMD-Athlon, at gasp, 1 Ghz! Yeah... then it just went downhill.

Now I use Macs, and, I'm pretty glad Apple didn't go with AMD. I do remember a lot of hullaba about why Apple didn't go with AMD at the time. Seems to me they got a peak at Intel's roadmap and said, "Yeah, let's go with this guy, gramps is just going to hold us back". I'm guessing they didn't want another IBM PowerPC G5 fiasco. The fact that Intel essentially pre-released a new chip for Apple's MacBook Air is pretty impressive, considering their market share.

[Sporkinum @ Apr 7th 2008 10:20PM]

I have always had AMD processors in my PCs, with the exception of my first back around 1987, a 16mhz 386sx.

Unfortunately, AMD is losing me this time. I can't get an AM2 socket mobo that supports AGP and pci-e. I can with Intel. I'll be buying my upgrade after the 20th when the Intel e2200 drops $20.

[Steffen Jobbs @ Apr 7th 2008 11:36PM]

Bad times all around. Motorola and now AMD. I'll bet the executives will be getting some sweet layoff packages. I don't think bad management did in AMD, it's probably that Intel can pour in lots of R&D money and come out with better processors. Trying to take down Intel's quad-core processors must be a costly battle. Surely there's enough computers being manufactured to support two top-tier processor companies.
With AMD's stock price being less than half of what it was the middle of last year, it doesn't look like there's gonna be a return to profit anytime soon, if ever.

[torqueo @ Apr 7th 2008 11:49PM]

What's an AMD?

[melvz @ Apr 8th 2008 1:07AM]

Alright way to go AMD!

[wud_e @ Apr 8th 2008 9:02AM]

I can't believe we are laying off again. Please pray for AMD because I work there. It's a great company to work for I just wish things would turn around.

[torqueo @ Apr 8th 2008 2:27PM]

I think that's the problem - AMD waits for things to turn around while Intel does something about it.