Instead of hire, fire!
Because of a sharp decline in revenue the computer company Advanced Micro Devices, they are being forced to fire employees in order to reduce cost. They are also cutting their spending in order to increase profits. The company reported to make only 1.23 billion dollars in the first Quarter which is much lower then predicted. Many were unsure of why there was such a decline in profit, it may be because there are other substitutes to buy from in the computer industry. A. M. D. gained a large portion of the market share but it's average selling price fell. It seems to me that the company risen too quickly and can't manage itself, it has become too complex and inefficient.
3 comments:
Fire empliyees is a good way to reduce. also those may found new technology to replace human workers.
A.M.D. and Intel are often neck in neck in the computer industry. They both produce the processors that run your computer. Advances in technology is probably the largest reason for the lose of money. People are constantly upgrading there machines to get the best performance. The company with the fastest processor at the time is going to get more of the market. There are people who only buy A.M.D. products or people who only buy Intel products, but the majority of the market is probably just wanting the best product. Firing employees would cut cost, and I'm sure they were firing employees that either weren't needed or who weren't producing. Like stated in the post it could be due to those kind of inefficiencies. I believe this was a smart business move for A.M.D.
I have an idea, drop the idea of the Micro Devices. Keep it as it is. it doesnt seem to have been working bad. This is causing many people thier jobs because a company wants to be considered "advanced."
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