Advanced Micro Devices (AMD) will not speculate on the security of its South African staff, following an announcement that the company is looking to lay-off 10% of its global workforce.
The chipmaker has been struggling to maintain market share against competitor Intel since it acquired its graphics division, ATI.
"AMD's cost structure needs to be reduced due to lower revenue expectations occurring in uncertain market conditions," says a company spokesman.
She says as a result of the workforce reduction, AMD expects to record a restructuring charge in the second quarter. "At this time, we are unable to determine the estimated amount of the charge as details are currently being finalised."
The company opened a South African office in June last year, sprouting praise from analysts expecting the office to boost competition in the local channel environment. AMD SA has five employees.
"In terms of how people are being impacted in individual offices, the details are still being finalised and we won't speculate," the spokesman adds.
Approximately 10% of AMD's total headcount will be affected, which amounts to 1 680 jobs globally, spanning a number of global locations. "All groups will be impacted relative to their business operations and needs. We expect that workforce reductions will begin in mid-April and will be completed by the end of the third quarter."
According to AMD SA country manager Imi Mosaheb, the company boosted its quarter-on-quarter growth of about 30% in the EMEA region - up to and including the last quarter of 2007.
He says the first quarter figures for this year are looking even more promising. "We are managing to make headway in the channel, and our marketing has served us well. We are looking forward to good growth in SA throughout this year."
However, the company has been battling to pull it together internationally where it lost market share to Intel following the delay of several chip technologies expected to save it, not the least of which is the Barcelona server core.
In 2007, Intel held 79% revenue share of the microprocessor market and AMD 13%, according to market researcher iSuppli.
However, AMD remains confident the cuts will help balance the company's losses and still expects to see future growth. "We remain excited about our new product offerings this year and the opportunities we see ahead to grow our revenue."
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