Industry sources have confirmed that AMD shared its strategy with key market players and that two Executive Vice Presidents and a few Vice Presidents have said to the audience that they plan to make the massive layoffs.

The top executives who confirmed the layoffs included Dirk Meyer, President and Chief Operating Officer of AMD; Mario Rivas, Executive Vice President, Computing Products Group at AMD; Jay Nunez, VP of North America; Mark Jones, Rueven Soraya, Director Chipset Business; and Larry McIntosh, who is the Director of North America Channel Sales at AMD.

Dirk and Mario are very serious players in the organization and Hector, the CEO, usually does not attend these things as he is too busy counting his bonus.

AMD feels that it can increase the revenue by laying people off and we see this more like a salvation than a real solution of a problem. AMD simply needs to sell more CPUs in order to increase the revenue. In order to sell more they need to fix the current issues and hopefully get back on track with high-performance 45nm parts. 

Things for AMD look pretty grim. Layoffs must be done by April 10-15, and employee morale is really low. Your morale would also be low if you were wondering whether or not you will be getting fired.