AMD Announces Large Job Cuts

Phynaz

Lifer
Mar 13, 2006
10,140
819
126
AMD annnounced they will miss their revenue forecasts and are cutting jobs.

Details

With any luck, maybe Hector will lose his job also.
 

v8envy

Platinum Member
Sep 7, 2002
2,720
0
0
Oh man, does the bad news ever end? 22% sales growth year over year looks great, but the analyst has pegged it right. You don't ramp up for growth in the forseeable future by shrinking the workforce.

Top brass never lose their jobs in the first round of job cuts so Hector will be with us for a while. The first pass is "Minions, please reduce your headcount by 10%." The minions apply the algorithm recursively, and a slightly disproportionate number of production rank & file get pink slips. The management chain remains mostly intact since no manager wants to have fewer people reporting to them -- only the leaf nodes have no choice but to fire their direct reports.

At this point you have the lowest level managers with as few as 1 report. They start attending every meeting called, 'dot-reporting' to one another, attaching to projects which look to be on track for success and generating a maelstrom of spreadsheets and status reports to each other. Productivity plummets and the top performers start leaving -- this makes the financials look doubly good for a quarter or two.

Stage 2 layoffs follow this -- once the beancounters figure out overhead (management doesn't produce, they're the cost of running a business) has skyrocketed at least 15-20% quarter over quarter. That's the first possible time you will see management layoffs.
 

CTho9305

Elite Member
Jul 26, 2000
9,214
1
81
Originally posted by: SlowSpyder
I know everyone here dumps on Theinquirer.net, but they did call this one correctly.

They call a lot of stuff correctly, or close to correctly. People in industry seem to consider them a much more valuable source than the average ATer does.
 

jones377

Senior member
May 2, 2004
451
47
91
Originally posted by: CTho9305
Originally posted by: SlowSpyder
I know everyone here dumps on Theinquirer.net, but they did call this one correctly.

They call a lot of stuff correctly, or close to correctly. People in industry seem to consider them a much more valuable source than the average ATer does.

They are safe to bash for anyone who wants to "be" someone.
 

Phynaz

Lifer
Mar 13, 2006
10,140
819
126
Originally posted by: CTho9305
Originally posted by: SlowSpyder
I know everyone here dumps on Theinquirer.net, but they did call this one correctly.

They call a lot of stuff correctly, or close to correctly. People in industry seem to consider them a much more valuable source than the average ATer does.

Charlie is pretty good.

Theo is an ass clown.

 

shabby

Diamond Member
Oct 9, 1999
5,782
44
91
Originally posted by: SlowSpyder
I know everyone here dumps on Theinquirer.net, but they did call this one correctly.

Yet amd denied it a day later, funny.
 

aigomorla

CPU, Cases&Cooling Mod PC Gaming Mod Elite Member
Super Moderator
Sep 28, 2005
20,882
3,230
126
Originally posted by: SlowSpyder
I know everyone here dumps on Theinquirer.net, but they did call this one correctly.

and nostrodomus predicted a lot of stuff as well.

i think a reputable source of info should have a small error count and high correct count.

Theinquirer has a high count on both.
 

TheJian

Senior member
Oct 2, 2007
220
0
0
I think this place bashes the Inq to much, they have a LOT of good reports and a lot of things people bash them for immediately but they come true a few months later. They usually beat this place to the punch also. Heck I read the news there and already have the story by 6am, when it's not usually posted here until far later in the day. Envy? AT/DT has been blowing it a lot lately (exaggerated headlines, XP 64bit is Orphaned (ROFL), worthless E8400 article etc (overclocking voids warranty and kills chips - OCing doom gloom article)...LOL), but I could find something to dislike at any place over the years. As a forum user, or hardware site reader I have no love for any of them and don't care where I get my info as long as it's good info. Nobody is perfect so it is necessary for us to use more than one source (heck more than 4 probably). Do I like some of the people more in certain forums? Sure. But I don't care about the name on the forum or the hardware site. Just the info. People should get over this "site love"... Is that "love at first site"?...LOL

On to the subject at hand, if they're not firing Hector who cares. They're firing (just another word for laying off...LOL) the wrong people. There's a reason he's on the HALL OF SHAME on Mad Money.... He should be tarred and feathered for getting 9mil when his company lost 3.5B? Jeez. Throw him off a roof-top. He should give all that back. It should be against the law (yeah pass this law..heh) to make money as a CEO when your company loses more than your salary. It should just be made law. Didn't he ruin motorola too? He left before the real crap hit the fan but it's totally dead now (if you're a shareholder that is). While you're at it add a law that "pay is commensurate with earnings" to really clean things up. For instance, no CEO can earn more than X % of company earnings. Add no golden parachute clause to that law also. There. The world is fixed. ROFL. Stockholders everywhere REJOICE! ROFLMAO. A pipe dream I know. But hey, they're at least asking if the FED should get involved in taking action against CEO pay. Hmm...Saw that on CNBC today. Every CEO that threw their company down the toilet recently for billions in losses made 150Mil+ in golden parachutes (we'll see how big Hectors is when he leaves). Apparently you need to be hired as CEO, completely fail and you retire with 200Million (some were 225m-250mil!). It really pays to screw up as CEO. Worldcom, Citigroup, Merril l, HomeDepot, Pfizer etc..
 

Viditor

Diamond Member
Oct 25, 1999
3,290
0
0
Originally posted by: v8envy
Oh man, does the bad news ever end? 22% sales growth year over year looks great, but the analyst has pegged it right. You don't ramp up for growth in the forseeable future by shrinking the workforce.

Top brass never lose their jobs in the first round of job cuts so Hector will be with us for a while. The first pass is "Minions, please reduce your headcount by 10%." The minions apply the algorithm recursively, and a slightly disproportionate number of production rank & file get pink slips. The management chain remains mostly intact since no manager wants to have fewer people reporting to them -- only the leaf nodes have no choice but to fire their direct reports.

At this point you have the lowest level managers with as few as 1 report. They start attending every meeting called, 'dot-reporting' to one another, attaching to projects which look to be on track for success and generating a maelstrom of spreadsheets and status reports to each other. Productivity plummets and the top performers start leaving -- this makes the financials look doubly good for a quarter or two.

Stage 2 layoffs follow this -- once the beancounters figure out overhead (management doesn't produce, they're the cost of running a business) has skyrocketed at least 15-20% quarter over quarter. That's the first possible time you will see management layoffs.

Some things to keep in mind...

1. Charlie's predictions were for an immediate 5% cut, whereas it's actually a 10% cut over the next 8 months.
2. AMD has had a long ramp up in workforce since they acquired ATI and hired the staff for the Fab 38 build. In 2006 (pre ATI), AMD had under 10k employees...today they have over 16k employees. Even with a 10% reduction (~1600 employees), they are still at very high staff levels.
 

lopri

Elite Member
Jul 27, 2002
13,211
597
126
Gradual cut sounds a lot worse than immediate cut. Am I wrong?
 

SickBeast

Lifer
Jul 21, 2000
14,377
19
81
Engineers should not be over-managed. A single manager for 100 professional engineers is plenty. They should fire teh management. All of it. Then hire a few new ones.

How does Hector Ruiz remain on as CEO while all these people are fired? How do the shareholders put up with this?
 

djnsmith7

Platinum Member
Apr 13, 2004
2,612
1
0
Originally posted by: SickBeast
Engineers should not be over-managed. A single manager for 100 professional engineers is plenty. They should fire teh management. All of it. Then hire a few new ones.

How does Hector Ruiz remain on as CEO while all these people are fired? How do the shareholders put up with this?

They apparently see something in him we don't. Seems like he's better at selling initiatives than producing results.
 

Viditor

Diamond Member
Oct 25, 1999
3,290
0
0
Originally posted by: lopri
Gradual cut sounds a lot worse than immediate cut. Am I wrong?

I think you are wrong myself...
Gradual cuts says to me that it's a well thought out cost reduction (this is what Intel did as well), while an immediate cut sounds like it's more financially desperate.
 

AmberClad

Diamond Member
Jul 23, 2005
4,914
0
0
Originally posted by: shabby
Originally posted by: SlowSpyder
I know everyone here dumps on Theinquirer.net, but they did call this one correctly.

Yet amd denied it a day later, funny.
They actually only denied that any layoffs had occurred up to that point, i.e. "we have not had any layoffs" (I'm paraphrasing what the AMD rep said). It's a minor semantic detail, but they still technically didn't lie outright.

On another note, the tech tabloid that came closest was actually Fudzilla, which predicted a 10% cut. I don't recall if they predicted an immediate one or a gradual one though.
 

Idontcare

Elite Member
Oct 10, 1999
21,118
59
91
Originally posted by: AmberClad
On another note, the tech tabloid that came closest was actually Fudzilla, which predicted a 10% cut. I don't recall if they predicted an immediate one or a gradual one though.

Top to bottom

As Charlie already wrote at the INQ, AMD is about to make a massive lay off, and we've learned that it might affect as much as 10 percent of its workers.

AMD currently has around 17.000 employees and this will mean that some unfortunate 1,700 might have to go.

This will happen in the next few weeks and it will affect top to bottom, from managers to engineers, low level to high profile.

http://www.fudzilla.com/index....view&id=6439&Itemid=35
 

The-Noid

Diamond Member
Nov 16, 2005
3,117
0
76
Hector stays in business because everyone always blames the CEO, as they blame the president on the economy.

In fact it is the engineers that have doomed the company by going to a single die quadcore.

45nm can not come fast enough.
 

AnandThenMan

Diamond Member
Nov 11, 2004
3,949
504
126
Originally posted by: Yoxxy
Hector stays in business because everyone always blames the CEO, as they blame the president on the economy.

In fact it is the engineers that have doomed the company by going to a single die quadcore.

45nm can not come fast enough.

So who runs the joint, Hector or the engineers? It is up to Ruiz to make the right choices. He is doing what he does best, run a company into the ground.

edit - I have to really wonder what the BODs are doing, why do they allow Hector to continue to flounder around and continually miss targets etc?
 

ayabe

Diamond Member
Aug 10, 2005
7,449
0
0
Originally posted by: SickBeast
Engineers should not be over-managed. A single manager for 100 professional engineers is plenty. They should fire teh management. All of it. Then hire a few new ones.

How does Hector Ruiz remain on as CEO while all these people are fired? How do the shareholders put up with this?

1 person cannot effectively manage 100 people, not in the real world.
 

Martimus

Diamond Member
Apr 24, 2007
4,488
153
106
Originally posted by: ayabe
Originally posted by: SickBeast
Engineers should not be over-managed. A single manager for 100 professional engineers is plenty. They should fire teh management. All of it. Then hire a few new ones.

How does Hector Ruiz remain on as CEO while all these people are fired? How do the shareholders put up with this?

1 person cannot effectively manage 100 people, not in the real world.

I agree, I can't imagine having to supervise more than 20 people effectively. Even at 20, that is cutting it pretty thin.
 

v8envy

Platinum Member
Sep 7, 2002
2,720
0
0
Originally posted by: Yoxxy
.

In fact it is the engineers that have doomed the company by going to a single die quadcore.

Seems to me if the Phenom was viable as a design (and the roadmap called for dual core Phenoms at one point) you could definitely go the Intel route and sandwich two dies in a package if 4 cores per die is the limiting factor. That doesn't seem like it'd call for a lengthy development process at all. Doubly so since I recall reading the K10 is just an optimized, tuned K8.

So if I was in charge and got reports that the flag ship product intended to draw high margins wasn't going to compete with Intel's mainstream part I'd be down there asking the engineers what they CAN do. I'd eat the crow, admit that hyping 4 cores on a single die was premature and isn't doable with current tech and ship a competitive part.

And if my production people can't deliver *anything* then it's my fault for not having good enough checks & balances and letting the company fall into such a state of disrepair. It's my fault if my marketing team isn't savvy enough to point out flaws in the product roadmap and unable to find good niches for our upcoming products. And it's my fault for not attracting and retaining visionary chief technology people educated and savvy enough to detect that the guys in the trenches are leading the company down the garden path.

Still blaming the leadership here, sorry. And worst case leadership should recognize they don't have the resources to compete and either scale down and scurry to a niche or pack up shop. Not collect fat pay checks while 'steady as she goes' takes the company into the tar pits. Ego has no place at the top of a publicly traded company.

45nm can not come fast enough.

Agreed.

As far as 'death by a thousands cuts' vs one 'final cut' -- the single deep cut is optimal, but it never happens that way. See my original post re: why nobody ever does it correctly. This 10% is just a start, expect another cut of roughly the same size over the next 2 quarters, and another 5-10% natural attrition rate over the next 6 months.

On-going cuts are absolutely terrible for morale. People get into a bunker mentality waiting for the next shoe to drop. They do everything in their power to make sure the guy in the next cube or office looks more ready for the chopping block rather than create value for the shareholders. Also unemployment insurance costs go through the roof, and the company gets a reputation on the street as a binger and purger. Top people at all levels stop wanting to come work for you unless you offer them an outrageous compensation package.

Gradual cuts over a long period are also associated with hiring freezes -- the labor department takes a pretty dim view of layoffs while hiring. Which means as people are lost due to natural attrition (see above re: low morale) they need to be replaced by contractors -- contractors don't show up as employees on the books, can't quit and can be found for a job slot very quickly. This is less efficient from a productivity standpoint because contractors have a ramp-up learning process and once they leave they take the knowlege with them. Plus it costs more money because you now have to cover a body shop's overhead and profit margin as well.

Ongoing small cuts are great from a theoretical standpoint if humans weren't involved. Unfortunately they are.


 

v8envy

Platinum Member
Sep 7, 2002
2,720
0
0
Originally posted by: Martimus

I agree, I can't imagine having to supervise more than 20 people effectively. Even at 20, that is cutting it pretty thin.

It's not that simple. If you try to have one person be both a project manager (requires shallow but broad focus across multiple projects) and technical manager (requires very narrow, deep focus on details of one project) you'll be faced with one or more disasters mid to late in every project.

In an ideal world you'd need a team lead for every 5 people or so. A technical manager for every 3-4 such teams, and a project manager for every 4 or so projects.

In addition, projects and departments overlap and you need more people to make sure departments get along -- e.g., QA gets what they need, environment and IT is in touch with everyone, marketing isn't leading engineering by too much and so on. And finally you need big picture people who have an eye on where the company is headed in the next 3, 6, 12, 24, 48 or more months to make sure everyone is marching in the same general direction.

Show me a ratio of 20 production people per 1 manager and I'll show you a record for wasted work and lack of productivity. About the only companies who can get away with this are body shops -- but it's an illusion, since the management is simply shifted to the client.
 

sonoran

Member
May 9, 2002
174
0
0
Originally posted by: v8envy
Top brass never lose their jobs in the first round of job cuts so Hector will be with us for a while. The first pass is "Minions, please reduce your headcount by 10%." The minions apply the algorithm recursively, and a slightly disproportionate number of production rank & file get pink slips. The management chain remains mostly intact since no manager wants to have fewer people reporting to them -- only the leaf nodes have no choice but to fire their direct reports.

<snip>

Stage 2 layoffs follow this -- once the beancounters figure out overhead (management doesn't produce, they're the cost of running a business) has skyrocketed at least 15-20% quarter over quarter. That's the first possible time you will see management layoffs.

Actually, Intel did it the exact opposite way - managers were the first to go, then they began whittling away at the individual contributors.
 
sale-70-410-exam    | Exam-200-125-pdf    | we-sale-70-410-exam    | hot-sale-70-410-exam    | Latest-exam-700-603-Dumps    | Dumps-98-363-exams-date    | Certs-200-125-date    | Dumps-300-075-exams-date    | hot-sale-book-C8010-726-book    | Hot-Sale-200-310-Exam    | Exam-Description-200-310-dumps?    | hot-sale-book-200-125-book    | Latest-Updated-300-209-Exam    | Dumps-210-260-exams-date    | Download-200-125-Exam-PDF    | Exam-Description-300-101-dumps    | Certs-300-101-date    | Hot-Sale-300-075-Exam    | Latest-exam-200-125-Dumps    | Exam-Description-200-125-dumps    | Latest-Updated-300-075-Exam    | hot-sale-book-210-260-book    | Dumps-200-901-exams-date    | Certs-200-901-date    | Latest-exam-1Z0-062-Dumps    | Hot-Sale-1Z0-062-Exam    | Certs-CSSLP-date    | 100%-Pass-70-383-Exams    | Latest-JN0-360-real-exam-questions    | 100%-Pass-4A0-100-Real-Exam-Questions    | Dumps-300-135-exams-date    | Passed-200-105-Tech-Exams    | Latest-Updated-200-310-Exam    | Download-300-070-Exam-PDF    | Hot-Sale-JN0-360-Exam    | 100%-Pass-JN0-360-Exams    | 100%-Pass-JN0-360-Real-Exam-Questions    | Dumps-JN0-360-exams-date    | Exam-Description-1Z0-876-dumps    | Latest-exam-1Z0-876-Dumps    | Dumps-HPE0-Y53-exams-date    | 2017-Latest-HPE0-Y53-Exam    | 100%-Pass-HPE0-Y53-Real-Exam-Questions    | Pass-4A0-100-Exam    | Latest-4A0-100-Questions    | Dumps-98-365-exams-date    | 2017-Latest-98-365-Exam    | 100%-Pass-VCS-254-Exams    | 2017-Latest-VCS-273-Exam    | Dumps-200-355-exams-date    | 2017-Latest-300-320-Exam    | Pass-300-101-Exam    | 100%-Pass-300-115-Exams    |
http://www.portvapes.co.uk/    | http://www.portvapes.co.uk/    |