Black day for AMD
The crisis also affects AMD. The Sunnyvale, California-based company has announced that it has initiated the necessary procedures for the layoff of 2,300 people and for the closure of two plants, Fab 14 and Fab 15 located in Texas. The measure, which will lead to the elimination of the 15 % of the workforce, is taken as a consequence of the negative market trend with a view to achieving savings of 120 million dollars a year. Management expects that staff cuts and factory closures should not have a negative return in terms of production levels that will potentially remain at the same level, ready to take advantage of a recovery that for now is not looming on the horizon. Yesterday AMD received another bad news, the decision by Gateway to stop the production of machines based on Athlon processors.