AMD to Cut 5% of Workforce

[Fjodor2001]

I'm not sure why AMD's x86 division still exists. They're about 5 years behind Intel,

5 years is not so much since the rate of Intel CPU performance improvement has been so slow for a long time. If it would have been 5 years difference and Intel raced ahead at Apple-levels of yearly performance increase it would have been much worse. Still I agree that it's too far for AMD to be truly competitive in many segments anyway.

But the current state is not so interesting anyway, since AMDs is working on a completely new uArch with Zen. So what's more important is how that'll turn out, which we'll just have to wait and see.

and Intel has unlimited money to throw into R&D.

Which is no guarantee for success. Both Apple and Intel have lots of money to throw into R&D, yet Apple is much better at getting value for those R&D money, looking at what CPU performance increases each company actually delivers.

 

[MiddleOfTheRoad]

If you look closer, neither of those companies exist any longer.

Anyway, isn't that what I just called for?

Well obviously, the structured bankruptcy gave them the opportunity to pick and choose which assets to shed. It would be amzing if AMD could ditch things like the Wafer agreement and a lot of the debt, but retain the IP and licences. They basically left the "bad" assets with their previous companies to sell off.

 

[ShintaiDK]

I'm not sure why AMD's x86 division still exists. They're about 5 years behind Intel, and Intel has unlimited money to throw into R&D.

Because the BoD wants AMD to be a CPU company before anything else. And more precise, a server CPU company. And this is why they are losing badly I the underfunded GPU section too. The result is a completely loss. And add to that a BoD that wont face any realities but rather shower themselves in money.

 

[Phynaz]

Well obviously, the structured bankruptcy gave them the opportunity to pick and choose which assets to shed. It would be amzing if AMD could ditch things like the Wafer agreement and a lot of the debt, but retain the IP and licences. They basically left the "bad" assets with their previous companies to sell off.

And the sooner they do it the better.

 

[mrmt]

Well obviously, the structured bankruptcy gave them the opportunity to pick and choose which assets to shed. It would be amzing if AMD could ditch things like the Wafer agreement and a lot of the debt, but retain the IP and licences. They basically left the "bad" assets with their previous companies to sell off.

It certainly would, but who begin the process? In GM's case the company was strong-armed by the USG and they could develop an actual plan before filling the procedure. In AMD's case I don't see nor the USG stepping in, neither an activist investor investing on the company and bringing down the BoD, and even less a concrete, viable plan to turn the company around. Not that it would be an easy task by any means, as whatever AMD wants to do it needs Globalfoundries blessing, and they seem quite happy with the current BoD wrecking the company.

 

[MiddleOfTheRoad]

It certainly would, but who begin the process? In GM's case the company was strong-armed by the USG and they could develop an actual plan before filling the procedure. In AMD's case I don't see nor the USG stepping in, neither an activist investor investing on the company and bringing down the BoD, and even less a concrete, viable plan to turn the company around. Not that it would be an easy task by any means, as whatever AMD wants to do it needs Globalfoundries blessing, and they seem quite happy with the current BoD wrecking the company.

I'm no lawyer, but I'd think that a Chapter 11 bankruptcy reorganization would be similar to what Chrysler and General Motors went through. It is a long, drawn out process -- but it would probably be the smart play for AMD in the long-term.

Some of the existing debt could be forgiven through the court process -- they might also be able to terminate the wafer agreement.

 

[ShintaiDK]

A chapter 11 also makes layoffs much cheaper.

 

[mrmt]

I'm no lawyer, but I'd think that a Chapter 11 bankruptcy reorganization would be similar to what Chrysler and General Motors went through. It is a long, drawn out process -- but it would probably be the smart play for AMD in the long-term.

Some of the existing debt could be forgiven through the court process -- they might also be able to terminate the wafer agreement.

It would be similar only if AMD had both someone to fund the company's restructuring and a viable business plan for when it gets out of the bankruptcy, they have none.

AMD's problems are more related to have a viable business at all than to issues with its capital structure, bankruptcy solves the former but not the latter. For these cases we have chapter 7, liquidation.

 

[Arachnotronic]

I'm no lawyer, but I'd think that a Chapter 11 bankruptcy reorganization would be similar to what Chrysler and General Motors went through. It is a long, drawn out process -- but it would probably be the smart play for AMD in the long-term.

Some of the existing debt could be forgiven through the court process -- they might also be able to terminate the wafer agreement.

Filing for Chapter 7/11 would wipe out existing shareholders, though. AMD's job first and foremost should be to protect and build shareholder value. Bankruptcy is the absolute last option that AMD should resort to.

 

[Fjodor2001]

A chapter 11 also makes layoffs much cheaper.

Does not seem like a big issue. This is the US after all. No big European style compensation packages usually. They've not had any problem reducing staff when needed so far anyway. Same as Intel and other companies BTW that also have made layoffs.

Do you really see it as a problem that AMD cannot reduce staff if needed in the current situation? In what way?

Also, I don't see why they'd even want to do that. Their staff is as asset in general.

 

[Arachnotronic]

Also, I don't see why they'd even want to do that. Their staff is as asset in general.

Do you really think the best and the brightest have stuck around during AMD's implosion?

The best engineers are working at Apple, Qualcomm, Intel, etc.

I know that if I were an engineer working at AMD right now, I would be looking for a new job ASAP.

 

[MiddleOfTheRoad]

It would be similar only if AMD had both someone to fund the company's restructuring and a viable business plan for when it gets out of the bankruptcy, they have none.

AMD's problems are more related to have a viable business at all than to issues with its capital structure, bankruptcy solves the former but not the latter. For these cases we have chapter 7, liquidation.

Yeah, right.... Yet again sleeping through the recent financial markets reactions to the cost restructuring/workforce reductions. Personally, I think they probably should have shed more jobs -- and become a nimble company of around 7500 employees. I think they could be a lot more profitable with a smaller product portfolio.

http://www.financialwisdomworks.com...ting-reaffirmed-at-jefferies-group-amd/62940/

 

[mrmt]

Yeah, right.... Yet again sleeping through the recent financial markets reactions to the cost restructuring/workforce reductions. Personally, I think they probably should have shed more jobs -- and become a nimble company of around 7500 employees. I think they could be a lot more profitable with a smaller product portfolio.

http://www.financialwisdomworks.com...ting-reaffirmed-at-jefferies-group-amd/62940/

That's my understanding too. I think they would be better being a second-rate Nvidia than the fourth rate Intel and third rate Nvidia they are now. AMD would be better picking up less fights but carrying a bigger stick to each of them. As of now the BoD is still clueless about the right size for the company, and each one of the cuts is being imposed on them, rather than being made in a planned, controlled fashion.

 

[tential]

Do you really think the best and the brightest have stuck around during AMD's implosion?

The best engineers are working at Apple, Qualcomm, Intel, etc.

I know that if I were an engineer working at AMD right now, I would be looking for a new job ASAP.

I withdrew my application from amd after hearing about layoffs in February-April(was awhile ago don't remember the date). No thanks, I like job security and the way amd has been run doesn't give me confidence any job is safe.

 

[tential]

I think you're forgetting cost of living. $232k is great and all but about 35% of their post-tax income would be dedicated just for rent if they lived in a 2 bedroom apartment locally

You don't know anything about Austin apparently then because they could literally buy a home cash after 3 years.... A big nice home too.

 

[superstition]

I think they would be better being a second-rate Nvidia than the fourth rate Intel and third rate Nvidia they are now.

At least AMD's management knows what products their engineers are making, instead of pretending that the engineers are responsible for putting a silly gimpy design into an enthusiast-level product.

And, really, the GTX 480 was pretty horrible, too.

 

[Phynaz]

Do you really see it as a problem that AMD cannot reduce staff if needed in the current situation? In what way?

Everytime a company cuts staff their unemployment insurance goes up. In addition to severance packages of course. And you had better not be laying off older workers if you don't want the NLRB coming down on you. And then there's always the risk of getting sued for a whole host of reasons, including SOX.

May I ask if you are in the US and what you do for a living?

 

[Fjodor2001]

Do you really think the best and the brightest have stuck around during AMD's implosion?

I know that if I were an engineer working at AMD right now, I would be looking for a new job ASAP.

Good enough to put out cat core APUs that required the mighty Intel to have to resort to contra revenue to be able to compete. And good enough to create a world-first HBM based GFX card with really high end performance. And good enough to create an APU for consoles that got the design win for both current gen high performance consoles. And good enough to drive development of Mantle, eventually forcing MS to develop the similar DX12. The list goes on...

And all this achieved with such a relatively small R&D budget. If anything the AMD engineers seem to produce much more and better results per invested dollar than e.g. the ones at Intel. E.g. Intel have been bleeding $4B a year alone on mobile for several years without still being competitive.

So if AMD was to lay off its staff in a hypothetical bankruptcy, then there'd be nothing left of the company, so it would be pointless. Also they'd lose their x86 license IIRC, so it's also pointless due to that.

The best engineers are working at Apple, Qualcomm, Intel, etc.

Revenue != Good engineers. Trust me. I've see source code from e.g. Qualcomm and Google, and it has often been poorly written. I've also seen brilliant code in the Linux kernel, that has been contributed for free by SW engineers working on their spare time.

The reality is that people do not only choose jobs based on what revenue or profit a company has, or even what salary they get. I'd say more often they factor in whether they'll be able to work on interesting technologies, what role they'll have at that company, if the company is close to where they live and have friends, etc.

 

[mrmt]

At least AMD's management knows what products their engineers are making, instead of pretending that the engineers are responsible for putting a silly gimpy design into an enthusiast-level product.

And, really, the GTX 480 was pretty horrible, too.

AMD doesn't make money, Nvidia does, even with the GTX 480 (which became the Quadro 4000 series), that makes a hell of a difference.

 

[ShintaiDK]

And the parody continues:
https://benchlife.info/amd-radeon-memory-launch-ddr4-for-performance-series-10062015/

 

[mrmt]

And the parody continues:
https://benchlife.info/amd-radeon-memory-launch-ddr4-for-performance-series-10062015/

Maybe this is part of a "waitint for Zen" campaign. They already have cases, they could start selling branded PSUs and Blu-ray drives too.

 

[NTMBK]

And the parody continues:
https://benchlife.info/amd-radeon-memory-launch-ddr4-for-performance-series-10062015/

*facepalm* It's not even like you can use it with Carrizo, you'd need SODIMMs.

 

[Erenhardt]

And the parody continues:
https://benchlife.info/amd-radeon-memory-launch-ddr4-for-performance-series-10062015/

Your point?

 

[ShintaiDK]

Your point?

Try follow the thread topic and you may understand it. Also what AMD products support DDR4 DIMMs? That's right, none!

And dont tell me in the desperation you got your picture from here:
http://www.laserengraving.co.za/usb-items/

 

[mrmt]

Your point?

You are comparing a product that Intel used to sell in their fan store with a product that AMD sells on the retail market? Did I understand right?