Jan 162009
 

The worldwide economic storm continues to hammer the computing industry. Chip maker AMD confirmed additional layoffs and pay cuts today:

AS WE REPORTED this morning, AMD has announced to employees they will be undergoing imminent layoffs and pay cuts.

A memo, reportedly sent out by CEO Dirk Meyer himself, detailed the extent of the chip firm’s damage control, and AMD confirmed the numbers to the INQ moments ago.

AMD noted, “As a result of the continuing global economic downturn, we have determined that we need to take difficult, but prudent, actions designed to reduce our costs.”

The statement continued “Beginning in February, we are undertaking several steps to lower costs, including temporarily reducing employee base pay and suspending some benefits programs.”

At the same time, archival CPU vendor Intel announced that its Q4 profits crashed by 90%. According to The Register, worsening market conditions have forced Intel to postpone Lynnfield’s launch yet again.

Asian motherboard makers say Intel will postpone the launch of its next mainstream quad-core processor line, code-named Lynnfield, according to DigiTimes.

In addition, the usually reliable Taipei news service reports that Chipzila will also postpone Lynnfield’s companion chipset, the P55.

According to DigiTimes’ sources, the chips – up until today set to launch in July – won’t appear until August or September or until “an even later time depending on the market situation.”

Circuit City to Close Its Doors

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Jan 162009
 

American electronics retailer Circuit City will be closing its doors as another victim crumbles beneath the weight of the ongoing global economic collapse.

The bankrupt US retail giant Circuit City will be fully liquidated after the company failed to find a buyer in time.

The company will be presenting the results of an auction for its assets at a hearing in US Bankruptcy Court in Richmond, Virginia later today.

Circuit City said in a statement that it will seek approval to begin the process to liquidate its assets.

“We are extremely disappointed by this outcome,” said Circuit City vice chairman and acting president and chief executive officer James A Marcum. “The company had been in continuous negotiations regarding a going concern transaction.

“Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company.”