In the article AMD announced that they will invest on Low power, Cloud, and Emerging markets, which means the company acknowledges that there will be no bright future with their current business models. Obviously they need some new growth engines that will reshape AMD just like IBM has been doing for past decade.
I think it is more about re-balancing the checkbook, than the workforce. If they were truly hiring all through last year, then they are likely overstaffed given their product portfolio and the emergence of tablets and smart phones (markets AMD does not have share in)versus traditional computers with keyboards. I seriously doubt that I will ever buy a desktop computer again, and if they put a few more features into tablets, I may never buy another laptop.
Indeed, CEO and VPs are the only skill-set that is lacked of at non US locations! Nowadays, the CEO/VP-value driven system is practically prioritized over that of the shareholders. Employees are nothing and are expendable at any time, in good time and in bad time. The compensation of the CEO and VPs are the key to most successful companies in USA, always.
"“Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD’s competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth,” said Read in a press release."
Does this mean the out-sourcing of R&D? If it is so, AMD (rather, its new CEO) just as well chose to accelerate its death.
It's not about AMD alone, the whole shareholder-value driven system is to blame if we are to put the blame on someone/something. Capital and jobs will go to where shareholder value is maximised. Social responsibility is something corporates add to their annual reports to embellish them....
AMD is already in the industry for long time and I think they have a good pool of talents. What kind of skill set are they now looking for? Is it something that can't be changed learnt internally? Even though going towards mobile may be what they need, does it mean the engineering skill for this technology is so different? It seems like a AMD has lost the patient for a good meal but too hungry so fast food is more realistic! Too sad to see such move!
Let's don't put salt on their wounds.
In general, EE engineers are numb to such news because it is already a kind of industry standards to do some cuts before Thanksgiving and Christmas.
But if you had experienced many times of such cuts and you are still psychologically strong to feel no pain of that, you are welcome to show your strength.
It seems to me that the job cuts are balanced across the board since 50% of the job cuts will affect North America which accounts for ~50% of the workforce. This does not seem particularly biased to me. As for skill set, I guess they want to hire more from the high growth regions (Far East) to build systems that suit those markets e.g. in the mobile segment. Again this does not seem to me as a bad idea, and the market agrees so it should be good for shareholders. That said, I am sure lower cost is a further sweetener :-) The question however is not what skill set do North American engineers lack? but what skill set do North American engineers have and other engineers around the world lack? If AMD can get the same value elsewhere at a lower cost, then shareholder value requires them to move these jobs elsewhere.
PS. Sad for the people who are going to be laid off though.
OK. I am going to stick my neck out here...
I don't get it. Am I the only one outraged here?
Here, in this story, it says:
A source at AMD said 50 percent of the job cuts would affect the company’s North American operations, where around half of the firm’s workforce is based. The firm said the cuts would “occur across all functions globally,” and were necessary in order to “re-balance the workforce skill set.”
Now, two red flags here:
1. 50 percent of the job cuts would affect the company’s North American operations.
Translation: 50 percennt of this round of cuts squarely target the U.S. engineers.
But the company is saying, "let's not call that. Let's call it 'global cuts.'"
2. The firm says that cuts were necessary in order to “re-balance the workforce skill set.”
Could AMD please explain what they mean by "re-balance" the workforce skill set?
More importantly, what do they mean by "skill set" in this context?
What "skill set" do North American engineers lack?
I think we all want to know that.