AMD Optimizes Cost Structure by Reducing Workforce

AMD announced on November 3 that it will be "Reducing it's cost structure" by making 10% of it's worldwide staff redundant and "terminating" existing contractual agreements. They expect to make savings of approx $10 million this quarter, and $118 million throughout 2012, mainly through the aforementioned redundancies and contract terminations. Redundancies are expected to be completed by the end of Q4 2011.

In addition to the restructuring savings, AMD expect to save a farther $90 million in operating costs, making total saving in 2012 of over $200. They expect to reinvest much of this in low-power solutions.

AMD also announced that they expect these changes to cost them $105 million over the same period, most of which is expected to happen in Q4 2011. Much of this expense is probably the cost of redundancy checks and relocation of remaining resources.

There is speculation on the internet that the failure of Bulldozer to live up to expectations may be partly to blame for the restructuring. It has also been said that production of the Llano chips was not as high as might be hoped, and this doesn't inspire confidence. AMD on the other hand say that the changes "will strengthen AMD's competitiveness" and that it will "(help) AMD to continue delivering industry-leading products".