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AMD-ATI to cut 2,000 jobs

Damn it, DAAMIT!

By Charlie Demerjian

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.