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Chip manufacturer reports net losses of $157 million

AMD reports losses, will axe 15% of workforce

AMD has announced that it has seen its net income decline by almost 25 per cent year-on-year, as its quarterly income fell to a loss of $157 million.

The results are devastating for the vendor, which had reported small profits of $97 million in the previous quarter, and means that it will be laying off nearly 15 per cent of its workforce.

The redundancies are officially part of a wider restructuring programme as the company focuses on growth areas such as mobile and embedded processing.

The losses are attributed to slow sales of the Llamo platform, which has now been superseded by Trinity, a sales decline in the desktop sector and, according to CEO Rory Read, an inability to keep up with changing trends in the IT industry.

“The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD,” said Read in a statement.

“It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated. As a result, we must accelerate our strategic initiatives to position AMD to take advantage of these shifts and put in place a lower cost business model.”

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