Chip giant AMD has announced that it is to restructure its business in order to compensate for a drop in quarterly revenue ahead of its Q1 earning report due in ten days time.
DailyTech reported that AMD’s revenue for Q1 is expected to come in at $1.225 billion – down from the projected $1.6 to $1.7 billion.
In response to this the firm is set to reduce its capital spending by $500 million and will ‘significantly reduce’ its discretionary spending. The company will also limit new appointments to ‘critical’ positions only.
"In a very short period of time, we went from being four years ago a significant player whose vast majority of products went to the channel distribution and not the OEM channel,” AMD CEO Hector Ruiz said at the Morgan Stanley Technology Conference in March. “In a very short period of time that has flipped to the point now where a vast majority of our products go to OEMs and less to distribution. That sort of transition frankly occurred in our view probably faster than we had planned.”
Elsewhere AMD has cut prices on its high end dual-core desktop processors, following the launch of Intel’s quad-core Core 2 Extreme QX6800.