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daleste
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re: AMD announces 10 percent workforce reduction
daleste   11/4/2011 2:19:36 AM
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It is a very painful move, but very much needed at AMD. I hope the people effected are able to move ahead quickly with little pain.

yalanand
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re: AMD announces 10 percent workforce reduction
yalanand   11/4/2011 2:58:39 AM
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Yes true, I hope AMD will compensate those affected engineers properly so that they can have less pain because its tough to get job outside these days.

goafrit
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Manager
re: AMD announces 10 percent workforce reduction
goafrit   11/5/2011 12:18:25 PM
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Very very tough. I wish they do not have to do this. There is no job out there. I am so unhappy why people keep thinking that cutting jobs is the only way to stay profitable. It is an excuse that makes no sense. When CEOs lack strategic vision, they use families to make Wall Street happy.

SylvieBarak
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re: AMD announces 10 percent workforce reduction
SylvieBarak   11/4/2011 4:54:16 AM
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Although if you were looking for a job anywhere, Austin is a good place to look.... the tech sector there is booming

zeeglen
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Blogger
re: AMD announces 10 percent workforce reduction
zeeglen   11/4/2011 4:57:24 AM
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for now...

junko.yoshida
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re: AMD announces 10 percent workforce reduction
junko.yoshida   11/4/2011 11:00:04 AM
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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.

sekapr
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re: AMD announces 10 percent workforce reduction
sekapr   11/4/2011 2:25:57 PM
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kill set!!

KB3001
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CEO
re: AMD announces 10 percent workforce reduction
KB3001   11/4/2011 2:37:32 PM
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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.

RDeLaPlaza
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re: AMD announces 10 percent workforce reduction
RDeLaPlaza   11/17/2011 7:46:21 PM
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"the market agrees so it should be good for shareholders." yes for the shareholders UNLIMITED GREED and their OEM minions. "I am sure lower cost is a further sweetener"... yeah right; specially for those losing their jobs... sorry; we want to make MORE money, bye. The next job that is lost to foreign cheap labor, may be YOURS; loser. "PS. Sad for the people who are going to be laid off though" ohhh so sorry, but you are not the one losing his job eh ?

KB3001
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CEO
re: AMD announces 10 percent workforce reduction
KB3001   11/17/2011 9:10:01 PM
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Your misplaced outburst won't change a thing. What happened at AMD is entirely consistent with the way the system works. To expect otherwise or moan about it is pointless.

Patk0317
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CEO
re: AMD announces 10 percent workforce reduction
Patk0317   11/4/2011 8:06:25 PM
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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.

lonecowboy
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re: AMD announces 10 percent workforce reduction
lonecowboy   11/4/2011 9:04:02 PM
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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.

cdhmanning
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re: AMD announces 10 percent workforce reduction
cdhmanning   11/7/2011 12:38:37 AM
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50% of the entire workforce is in North America where 50% of the layoffs are occurring. I don't see how you can say that this is unfairly targeting US employees. "Rebalancing" likely means that the required skills are not where they are needed. For example US might have an excess of fab skills and engineers relative to the size of US-side fabs. Likely too, changes in the number/type of chips being designed might change the need for design staff relative to fab staff.

help.fulguy
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Manager
re: AMD announces 10 percent workforce reduction
help.fulguy   11/10/2011 4:30:10 PM
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Whats not to understand....I am aghast that you cant understand it.....May be your english skills are not on par with what you are doing...First, they are making the job cuts in the same proportion of their Geo employee spread and not focusing on one geo versus another...Second, The existing engineers on the AMD payroll dont have the skillset that they need in future and so, they are being chopped and they will hire new engineers that meet the skillset that they are looking for now....So, they are rehiring....why s that a red flag?

nosubject
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re: AMD announces 10 percent workforce reduction
nosubject   11/4/2011 3:54:12 PM
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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.

GREAT-Terry
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CEO
re: AMD announces 10 percent workforce reduction
GREAT-Terry   11/4/2011 4:22:36 PM
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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!

KB3001
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CEO
re: AMD announces 10 percent workforce reduction
KB3001   11/4/2011 4:54:20 PM
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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....

the lavender fan
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re: AMD announces 10 percent workforce reduction
the lavender fan   11/4/2011 7:47:14 PM
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"“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.

patrick_yu
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re: AMD announces 10 percent workforce reduction
patrick_yu   11/4/2011 7:49:49 PM
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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.

old account Frank Eory
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re: AMD announces 10 percent workforce reduction
old account Frank Eory   11/4/2011 9:17:42 PM
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AMD's website still shows a fair number of open reqs -- some in China, but most in California, Austin and Ontario. I just want to point that out, without offering editorial commentary.

mmeyer2
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re: AMD announces 10 percent workforce reduction
mmeyer2   11/4/2011 11:23:05 PM
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Maybe they canned the guy who updates the website. But seriously, maybe the website just hasn't been updated yet.

jbbb
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re: AMD announces 10 percent workforce reduction
jbbb   11/4/2011 9:20:54 PM
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AMD is washing out the bottom 10% of performers across the board. They have a ranking system just like every other company today. This is the easiest thing to do right now and of course you get the biggest $$ for each employee laid off in the US. In my opinion it is an outrage. Lets prey on the bottom 10% cause its the easy think to do. Everyone will be in the bottom 10% at some time cause stuff happens; divorce, illness, money, etc. So lets make it worse and lay you off.

old account Frank Eory
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re: AMD announces 10 percent workforce reduction
old account Frank Eory   11/5/2011 1:53:07 PM
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Except that the rank & rate process is imperfect and the resulting "bottom 10%" will inevitably include good employees that you really want to keep, while the top 90% will include some who you really could get by without. I don't know who came up with the scheme of rank & rate, but the notion of pitting employees against each other -- particularly those who work together as a team -- has always struck me as bizarre and counter-productive.

daleste
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CEO
re: AMD announces 10 percent workforce reduction
daleste   11/6/2011 2:10:06 AM
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Yes, all the large corporations use the rank and rate. When times get tough, they jetison the bottom 10. It is an imperfect system, but at least it is a system. You don't want to be in a place without a chair when the music stops. I like the way they only hire the top 10% so they have only the best, then they lay off the bottom 10 anyway.

seaEE
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CEO
re: AMD announces 10 percent workforce reduction
seaEE   11/8/2011 3:31:57 AM
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"I don't know who came up with the scheme of rank & rate, but the notion of pitting employees against each other -- particularly those who work together as a team -- has always struck me as bizarre and counter-productive." I enjoy engineering, but I don't believe the type of culture that this creates (and unfortunately it seems to be fairly pervasive) is a healthy one for doing engineering work!

daleste
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CEO
re: AMD announces 10 percent workforce reduction
daleste   11/8/2011 3:41:57 AM
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I totally agree with you, seaEE. If you want your "team" to be secretive and backstabbing, just add a rant and rave, then fire the bottom 10. It's how the corporations ensure that teams will never be productive.

nosubject
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Rookie
re: AMD announces 10 percent workforce reduction
nosubject   11/5/2011 5:44:28 PM
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well said. Who said the engineers are not good politicians? With the rank&rate process, and the expected job insecurity, plenty of engineers can play the office politics very smartly.

cdhmanning
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Rookie
re: AMD announces 10 percent workforce reduction
cdhmanning   11/7/2011 12:48:29 AM
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Businesses are not charities. Why should companies and competent staff carry the incompetent staff. If you're in the bottom 10% of any industry then you really don't belong. It has been well documented that good staff can be as much as 30x as productive as the bottom 10%. Keeping those lower 10% just slows companies down. I'd personally like to see more bottom-10% style cuts.

DrDon
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re: AMD announces 10 percent workforce reduction
DrDon   11/6/2011 7:47:58 PM
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@ daleste - Getting rid of the bottom 10% of your performers is not a "layoff", this should be done everyday and it is called good HR policy which was made famous by the GE CEO, Jack Welch. @Junko - I agree, although I would not use the word "outraged", "sad" maybe. AMD is trying to "Carly" their way to profitability for the sake of their stock price. Wonder how this is going to work out in the long term? I am not optimistic. The key to success is to motivate, encourage and enable your engineering, marketing and sales teams, not lay them off. More like Steve Jobs, less like Carly........

Neo10
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re: AMD announces 10 percent workforce reduction
Neo10   11/7/2011 5:47:56 AM
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The number you should be looking at is $118 mill, how else can they partition the layoffs to achieve that target. This I guess is the amount they need to start on some new lateral business they are not in.

FDunn3
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Rookie
re: AMD announces 10 percent workforce reduction
FDunn3   11/8/2011 10:35:03 PM
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They need a redesign of their new FX CPUs. I was looking for these to be an Intel killer but apparently under single or few threads it does not know how to distribute them well as they may use 3 full (quasi dual cores), give each core it's own FP unit as AMD is still not keeping up with Intel on intelligent core throughput and encryption. I have been waiting for the FX CPUs and was going to buy the FX8150 but if an Intel 2500 & 2600 part (lower and slightly higher price respectively) beat the pants off of their "top of the line" FX8150 then what is the point? All my systems are AMD Phenom 4 or 6 core and I am satisfied withem for now. Especially when those same parts beat the FX8150 in some of the less threaded programs. If you are only using your system for Video Rendering then have at it but even there the Intel 2600 part was dead-even with it. Get with it AMD!

jbbb
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Rookie
re: AMD announces 10 percent workforce reduction
jbbb   11/8/2011 11:57:43 PM
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Rank and rate programs are consistently abused across the industry. These programs are put in place to do exactly what AMD did, whack what AMD considered to be the bottom 10%. Rank and rate is almost always used without any prior training or documentation, I know because I was a manager at a large semiconductor company, and yes I was required to lower rank for personal issues, including divorce. Overall, when your hired as a full time employee you exchange higher pay for longer term employment and benefits. US companies over the past years have been consistently moving further and further away from this implied agreement, the latest invention here is rank and rate.

help.fulguy
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Manager
re: AMD announces 10 percent workforce reduction
help.fulguy   11/10/2011 4:38:59 PM
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Whats not to understand....I am aghast that you cant understand it.....May be your english skills are not on par with what you are doing...First, they are making the job cuts in the same proportion of their Geo employee spread and not focusing on one geo versus another...Second, The existing engineers on the AMD payroll dont have the skillset that they need in future and so, they are being chopped and they will hire new engineers that meet the skillset that they are looking for now....So, they are rehiring....why s that a red flag?

t.alex
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Rookie
re: AMD announces 10 percent workforce reduction
t.alex   11/11/2011 12:56:04 PM
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AMD is not well known anymore, it seems.



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