Chicago (IL) - In an email sent to employees, AMD president and chief operating officer Dirk Meyer called the headcount reductions at the company "painful", but said that the company has not been able to grow its revenues at a pace that would justify the company’s current expenses. Q1 revenue, which will be officially announced on April 17, fell short of internal expectations in each of AMD’s businesses.
This "unfortunate truth", according to the executive, in combination with an "uncertain environment" requires the company top cut "approximately" 10% of its workforce starting in mid-April. The restructuring is expected to be completed by the end of the third quarter of this year. AMD currently employs just under 17,000 people.
The cuts apparently will be taking place across all business units. Meyer told employees that the reductions "will be determined by a review of employee performance, skill requirements and functional needs. "
"While this action is a painful one, it is necessary in order to put us back on path to success. Thank you for your patience and cooperation, as we drive towards consistent profitability and a brighter future in the second half of this year," Meyer wrote.
The Inquirer has printed the full email.