AMD to sack 20% of workforce
AMD is to sack a fifth of its workforce, says Bloomberg. It is expected to lay off 2,340 people as a result of the weakening PC market and consequently reduced x86 processor sales.
AMD is forecasting a 10% decline in sales in Q3 compared to Q2.
Intel, the other supplier of x86 processors, recently reduced its Q3 forecast and suspended its full year forecast citing reduced PC sales.
On the other hand, tablet sales are growing at nearly 70% a year.
On October 26th a new version of the Windows OS is due to be launched – Windows 8 – which works on both x86 processors and ARM processors.
Windows 8 may boost sales of x86-based PCs, or it may be the launch pad for a new range of computers based on ARM processors rather than x86 processors.
Or, Windows 8 may further boost the sales of tablets at the expense of notebooks and desktops.
For the first time in over a decade, there is expected to be a decline in sales of x86-based computers this year. Q3 sales were over 8% down on Q3 sales last year.