Recently we reported on potential job cuts at AMD. At the time it was believed that as many as 30 percent of its staff might get the boot. Now it is official, though it is actually just 15 percent.
According to AMD the PC industry is going through some major changes and they are having some pretty big temporary struggles as a result. To showcase the troubles that AMD is having, just take a look at their 3rd quarter of 2012 results, the company had a major loss of $157 million at that time.
AMD says the cut will save them up to $20 million in the 4th quarter of the year and $190 million in fiscal 2012. This is also notably the second cut that has occurred under the leadership of AMD CEO Rory Read. For those that don’t remember, about 10 percent of the company was laid off just last year.
What is the salvation for AMD? That’s hard to say. The company has already shown us its low-power Hondo, or as it is officially known as the Z-60 APU. The problem is that the new chip really isn’t all that impressive and the company doesn’t seem to be actively courting any big names when it comes to the tablet market.
While the PC industry isn’t dead, the future is much brighter in the mobile sector. AMD claims to acknowledge this but they have yet to do much to reach out into the smartphone or tablet market. Meanwhile, Intel has announced many Windows 8 tablets running x86 processors, as well as Android smartphones.
On the positive side, AMD is working with BlueStacks to bring Android apps to future AMD devices, so there is still some hope for the company when it comes to tablets.
Is it possible for AMD to recover from this loss? Sure, it just requires a clearer strategy that looks to the future and manages to attract more mobile partners.