AMD Restructuring Costs Revealed
AMD’s cost cutting measures for this year have been brought to light in a U.S. Securities and Exchange Commission filing.
Back in December, details of the then recent layoffs and financial restructuring of Advanced Micro Devices were released via an SEC filing. The filing showed that the company laid off 600 people, 100 more than the initial figure of 500 a company spokesperson announced in November, which in turn had an effect on restructuring costs for Q4 as well as 2009. The extra hundred layoffs saw the company’s total cost of restructuring for Q4 shoot up to $70 million, $20 million more than the estimated $50 million earlier in the quarter. Reports said AMD would also need to make further cost reductions early in 2009 to compensate for the extra cash spent, however the company would not provide an estimate for this year’s 2009 costs.
Late last week another filing by AMD put a number on the cost estimates for 2009 at a nice, round $50 million, which will include approximately $23 million for employee severance and related benefits, $13 million for contract or program termination costs, $7 million for "asset impairments," and another $7 million site consolidations and closures. AMD went on to clarify that the restructuring will be complete by the end of FY09.
PC World cites Dunham Winoto, senior analyst for semiconductors at financial analyst firm Avian Securities as saying the company could have a rough time bringing operating expenses in line with revenue. AMD is set to announce its first quarter results for fiscal 2009 on April 21.