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AMD adjusts its quarterly forecast and plans to lay off every tenth employee

AMD Adjusts First Quarter Results As Sales During This Period Was Below Target. In addition, she unveiled a plan to reduce staff by 10%.

In absolute terms, three-month revenue is expected to be approximately 1.5 billion. Doll., which is 15% less than last quarter.

Previously it was assumed that sales will correspond to seasonal fluctuations in demand, in other words, will decrease by 5-10%. Thomson Financial analysts estimated income at 1.62 billion. Doll.

Violent confrontation with Intel and internal problems of the company are named the main reasons for the plight of AMD. AMD lost 3.38 billion in 2021. Doll. (including write-off of 1.6 billion. Doll. in connection with the purchase of ATI) and was forced to postpone the mass production of quad-core processors due to an error.

In fairness, it should be noted that recently the situation has begun to improve – corrected versions of desktop and server processors have appeared, a division that is engaged in the release of graphic solutions has been operating successfully.

A possible way for AMD to return to profitability is to cut costs. To this end, the company plans to lay off about 10% of its employees by the end of the third quarter – about 1600 people.

The quarterly report, which will allow a final assessment of the situation, should be published on April 17.

Source: TheStreet.com

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