Advanced Micro Devices Inc. is cutting some 1,400 workers as a weak computer market and manufacturing delays have hurt the world’s second-biggest maker of microprocessors for PCs.
The layoffs announced Thursday amount to about 12 percent of the company’s 12,000 workers and are the first big move by AMD’s new CEO, Rory Read, who was hired from Lenovo Group in August.
AMD is struggling with an industrywide problem: weak PC sales growth, particularly in the U.S. and Europe, which has been anemic because of the economy and competition from smartphones and tablets.
Although PC shipments continue to grow, the pace is slowing sharply. Shipments of PCs rose in the third quarter but at a more sluggish pace than market research firms IDC and Gartner Inc. expected. That has raised concerns about the strength of the market going in to the holiday shopping season.
Read More/Source: Yahoo