AMD-ATI to cut 2,000 jobs
Damn it, DAAMIT!
By Charlie Demerjian: Thursday 12 October 2006, 15:37
THE SECOND WE got word about the upcoming AMD layoffs was the
second before the phone started ringing asking about details. We
can now fill in some of the blanks, but nowhere near all.
The numbers we hear back up the earlier set precisely - 1,200 from
ATI, 800 from AMD, give or take a bit. The picture on the ATI side
is a little clearer because of the nature of the cuts, you can just
quantify them more easily.
The first of these is the AIW program we told you about earlier
today. Add in a few of the smaller offices, sales and marketing
type ones that overlap with AMD, and you have a few more toward the
magic 1200.
DAAMIT will do a little cutting closer to home also. Corporate
Marketing is looking awfully redundant, how many people do you need
to sell to a single account? Probably not many, so there go a few
more. There will probably be a bunch of NA PR that goes along with
it, they have been under fire recently for certain specific leaks.
I would expect that to be more overlaps than anything else
though.
The one that gets me is a few software teams will be let go from
ATI, but the sources were not more specific than that. You can
guess the AIW related ones are on the short list, but who knows
after that? This one is the most curious to me.
On the AMD side, it is a little less clean cut. 800 is a lot, but
far from the end of the world. The cuts we are hearing from that
side are more culling of deadwood than groups. AMD is pretty lean,
owning 20% of the x86 market with 10% of Intel's people, so there
is not a huge amount of spare groups.
We are told the AMD cuts are more on the person level, with
performance being measured there rather than what a group is doing.
There are no underperforming divisions there to remove as a whole
like the ATI side is.
We expect announcements shortly after the merger closes, certainly
before the end of the month, and they will most likely take effect
in mid-November like we said earlier. Rumour has it that the
severance packages will not be as generous as Intel, but far from
the outright screwings of HP. Things are never dull at the combined
AMD/ATI nowadays.