AMD cuts 710 jobs after disappointing results

AMD is cutting 7 percent of its workforce, causing 710 jobs to disappear. The new reorganization that the brand new CEO Lisa Su is going to implement follows disappointing results. Sales from APUs and video cards fell by 16 percent.

The jobs should be gone before the end of the year, and AMD hopes to save $9 million this year, an amount that will increase to $85 million next year. However, the reorganization also comes with additional costs of $57 million this year and another $13 million next year.

The division that makes the semi-custom chips for the PS4 and Xbox One performed well. Together with the Enterprise and Embedded branches, although sales were 21 percent lower than in the same period last year, profits rose to 108 million dollars.

That was not enough to offset the losses of the Computing & Graphics division. That branch saw sales fall by 16 percent compared to last year and the loss amounted to 17 million dollars. AMD attributed the poor numbers to poor sales of laptops, chipsets and video cards.

Ultimately, the turnover amounted to 1.43 billion dollars, converted 1.12 billion euros, which was 2 percent lower than last year. AMD’s profit fell by 35 percent to 20 million dollars, or 15.6 million euros. Competitor Intel was able to profit from the recovery of the PC market.