AMD announced a restructuring plan and implementation of operational efficiency initiatives designed to strengthen the company's competitive positioning. AMD expects that these combined actions will create a more competitive cost structure and rebalance the company's global workforce skillsets, helping AMD to continue delivering industry-leading products while improving productivity, reducing time-to-market and better aligning with key industry trends that are expected to drive growth.
"Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD's competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth," said Rory Read, AMD president and CEO. "The actions we are taking are designed to improve our ability to consistently address the needs of our global customer base and stake leadership positions in lower power, emerging markets and the cloud."
AMD expects that the restructuring plan will result in operational savings, primarily in operating expenses, of approximately $10 million in the fourth quarter of 2011 and $118 million in 2012, primarily through a reduction of its global workforce by approximately 10% and the termination of existing contractual commitments. The workforce reduction will occur across all functions globally and is expected to be substantially completed by the end of the first quarter of 2012. Based on anticipated savings from the restructuring plan, AMD expects fourth quarter 2011 operating expenses will be approximately $610 million.
As a result of implementing efficiencies across the company's operations, AMD expects to save approximately $90 million in 2012 operating expenses in addition to the restructuring plan savings, resulting in more than $200 million of expected combined operational savings in 2012.
The company expects to reinvest a significant portion of the savings to fund initiatives designed to accelerate AMD's strategies for lower power, emerging markets, and the cloud.
The company's actions pursuant to the restructuring plan will take place primarily during fourth quarter of 2011, with some restructuring plan activities extending into 2012. The company currently estimates that it will record restructuring expense in the fourth quarter of 2011 and in 2012 of approximately $101 million and $4 million, respectively. Of the total restructuring expense, approximately $56 million will be future cash expenditures in 2011, $33 million will be future cash expenditures in 2012 and $15 million will be future cash expenditures in 2013.
Latest News Posts
- Detroit: Become Human weighs 42.5GB on the PS4
- ASUS ROG Swift PG27UQ: 4K 144Hz G-Sync goes on pre-order
- The Crew 2 system requirements revealed: doesn't need much
- DICE teams with NVIDIA for Battlefield V on the PC
- ASUS is giving away its ROG Swift PG27UQ: 4K 144Hz G-Sync
- Buy 5 Pieces Samsung Galaxy S9 (www.BizFests.com) 64GB $1,595
- Buy 5 Pieces Samsung Galaxy S9 64GB SM-G960UZKAXAA $1,595
- X58a-ud5 rev 1.0 Bios with VT-d support
- HyperX FURY DDR4-3466 16GB Dual-Channel Memory Kit Review
- If I use the M2_1 slot in the x470 Taichi Ultimate ,will it take away PCIE lanes from the GPU?
- Micron Launches Industry's First Enterprise SATA Solid State Drives Built on Leading 64-layer 3D NAND Technology
- Micron, Rambus, Northwest Logic and Avery Design to Deliver a Comprehensive GDDR6 Solution for Next-Generation Applications
- Toshiba Memory America Unveils UFS Devices Utilizing 64-Layer, 3D Flash Memory
- ASUS Announces GeForce GTX 1070 Ti Series Gaming Graphics Cards
- ASUS Announces ASUS Hangouts Meet Hardware Kit