Chip maker AMD is about to cut thousands of jobs, our colleagues at.
According to people familiar with the matter, Advanced Micro Devices will let go between 20 and 30 per cent of its workers in the coming weeks. It's possible, though, that the number of those affected could be lower, the sources added.
AMD employed 11,737 people at the end of the second quarter, so up to 3,500 of them could be out of a job. Tough times.
The announcement could come as early as next week. AMD will go public with its quarterly earnings on Thursday, so don't expect brilliant results, if this report is anything to go by.
AMD has been struggling in the face of competition from the likes of Intel and Nvidia. With the rise of tablets, sales of traditional PCs and laptops have been on the wane as well. PC shipments in the last quarter were down by 8 per cent year-on-year, according to research firms Gartner and IDC.
Just a year ago, AMD sacked 10 per cent of its staff. It predicts its third-quarterly revenue will be down about 10 per cent, instead of the 4 per cent it previously thought.
It looks as though AMD needs to make some serious inroads into the lucrative mobiles and tablet markets, and fast. Earlier this week, it announced its first chip for tablets would launch alongside. It's not just market conditions hurting AMD though. The company suffered production issues that meant it wasn't able to meet demand for a period last year.
Analysts don't fancy its chances much either. Bernstein analyst Stacy Rasgon said witnessing AMD's drawn-out demise was like "watching a slow-motion train wreck".
Other tech companies have also felt the pinch of the current economic climate.had to let go some of its workforce earlier this year, as did .