AMD have announced a restructuring plan which is designed to strengthen the company's competitive positioning. AMD claim that the restructuring will make for a more competitive cost structure and to ‘rebalance the company's global workforce skillsets'.
Rory Read, AMD President and CEO said “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. The actions we are taking are designed to improve our ability to consistently address the needs of our global customer base and stake leadership positions in lower power, emerging markets and the cloud.”
They expect that the restructuring plan will reduce operating expenses by approximately $10 million in Q4 this year and $118 million in 2012. The staff reduction is going to happen throughout the organisation and is expected to be completed by the end of Q1 2012. AMD have said that they expect Q4 2011 operating expenses to be approximately $610 million.
Kitguru says: Their reports indicate an overall saving of $200 million in 2012 with much of the savings reinvested into strategies for emerging markets, lower power designs and the cloud.