Advanced Micro Devices Inc. said it will consider exiting non-core businesses if these don't show clear signs they "are on a healthy path to leadership and profitability," according to chairman and CEO Hector Ruiz.
The move is part of steps being taken by the company to restore its operations to profitability. AMD has previously said it will cut 10 percent of its workforce and is now considering a wider range of reorganization options that could result in deeper cuts and possible business unit disposal.
"We are embarking on a significant restructuring of our company," Ruiz said during a conference call with analysts on Thursday (April 17.) "We need to intensely scrutinize our non-core businesses and revisit their strategic fit into our plans and their path to growth and profitability. Absent these, we will exit those businesses."
As with a previous plan announced by the company one year ago to adopt what AMD has described as asset-smart manufacturing, Ruiz declined to provide details of the changing strategic focus, promising instead to address the issue soon.
"We have made significant progress in our asset-smart strategy and I am very hopeful that we will be able to communicate details of this rather complex effort in the near future," Ruiz said during a conference call on the company's first quarter results.
"At that time, we believe we will also have an opportunity to further restructure the company for increased focus and added flexibility while placing us in a better position to deliver sustainable, profitable growth," Ruiz said.