Financial Source: Times Online (http://www.ftp.com) Date Published: 4/7/08 Word Count: 427 AMD Warns as it seeks to cut workforce AMD, Advanced Micro Devices, issued a sales warning and said it plans to cut their workforce by 10 percent. After 5 consecutive quarterly loss postings, AMD posted another big loss in the 1st quarter of 2008. They expected to post a loss, but the loss was much larger than they had expected. Advanced Micro Devices currently employs approximately 16,500 employees, so that means that approximately 1,650 jobs will be cut by the end of the 3 rd quarter of 2008. The job cuts are another precaution being taken by AMD to continue operating at a loss. They are still optimistic about increasing sales and taking a turn towards profitable figures in the 2nd half of 2008. AMD has been able to sustain as a profitable company by offering a comparable and/or better product than their rivals at a lower price. Now that Intel has been able to lower their prices to compete with AMD, this is no longer an attractive incentive to consumers. AMD is hoping to become more attractive to consumers when they unveil their new product line this year. AMD had a loss in their shares as well this quarter. They went down five percent. this With continuing downward trend in AMD's sales and shares, the company may face more difficult decisions than just cutting employees. Being that they have been operating at a loss for 6 straight quarters, they really need a turnaround on their profits. The more that they have to cut their workforce, they may eventually have to face the possibility of shutting down or selling out to a company that can turn around their business. Their losses may be in part due to the fact that the economy is also on a downturn as a whole. Due to the public's fears of a recession and/or depression, people are only purchasing necessities, leaving the computer market very dry. People that are purchasing items are purchasing selectively and are researching the very best before making their purchase. In my opinion, AMD can only go up from here. Their products have a history of being exceptional and affordable. They need to be cautious and release their new line without rushing the products. With their teamwork with ATI, they can make a superb product and be able to turn around their profitability and avoid shutting down. It is a shame that they will have to release so many workers, but sometimes that is necessary in running a business.