Having recently laid off about 1,700 people — amounting to nearly 15 percent of its workforce — whispers around the offices at chipmaker Advanced Micro Devices are already focusing on another corporate reorganization that would probably include even more layoffs.
Multiple sources confirm to AllThingsD that senior managers are girding their teams for yet another shakeup, though they are saying that the number of jobs that will be eliminated this time around will be much smaller. Some employees are being quietly told by managers that they will lose their jobs in January, but are being kept around for the moment as insurance against the possibility of other key people quitting before then, one source told me.
Another source told me that it’s an open secret around the corridors of AMD’s offices in Sunnyvale, Calif., and Austin, Texas, that another round of job cuts are coming. “The thinking is that management needs to get a few things right that they didn’t in the last round of layoffs,” one source told me.
It’s unclear exactly how many jobs will be eliminated in the pending reorganization. One source described the target number as “in motion,” in part because AMD managers are waiting to see how many more people quit on their own accord between now and January — and thus don’t require expensive severance packages. “Once the rate of attrition is known, they’ll know how many more they need to fire to get to the final target,” one source told me.
An AMD spokesman didn’t return messages.
Word of yet another shakeup comes only days after a Reuters report saying that AMD has hired investment bank J.P. Morgan to help advise it on strategic options, including a sale of certain assets, or even of the company itself.
AMD took pains, both in external and internal statements, to dispute the notion that a sale is possible in the days and hours after the report. Hours after the Reuters story on Tuesday, AMD issued a carefully worded statement saying that it is “not actively pursuing a sale of the company or significant assets at this time.” Note that the statement addressed nothing about J.P. Morgan’s hiring.