AMD the only processor maker who has a chance to rival Intel has announced they will be cutting 10% of the global workforce. This is down to a 15% drop in profits expected for Q1 so it’s purely a cost cutting measure. The 10% of the workforce means an expected 1,650 jobs gone.
While any job losses are unfortunate for those who are lost the decrease in profits was not unexpected. Sales during the first three months of the year are normally low. A confirmation of the low Q1 earnings are expected when the numbers are officially announced on April 17th.
While this does not mark the end of AMD by any means with AMD in difficulty this could mean a raise in processor prices to match Intel’s price levels to make up lost ground and satisfy AMD investors. What this could mean for you is that the next time you go down to the store to buy that processor upgrade it could cost more in the wallet than you might expect.