Price of cost-cutting
MAKER OF chips, AMD, has laid off more than 375 people so far as the outfit tries to reduce its debt load.
More than 100 layoffs were at its Markham offices. More than half of the redundancies were former ATI workers which was recently bought by AMD. Most of the redundancies were not in the company's technical sides but in the finance and accounting parts of the business.
Since AMD bought ATI it has been struggling to sort out its finances as it attempts to combine traditional processing chores with graphics capabilities in one chip.
At the end of last year, AMD had $1.5 billion in cash and $3.8 billion in debt, including $2.2 billion associated with the ATI acquisition.
Now it is locked in a price war with Intel which means that it has to sell chips a lot cheaper than it would like.
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