AMD has shut down its development lab in Dresden, Germany, which focused on developing support for AMD server chips on the open-source Linux kernel, and also wrote code for desktop and notebook processors. This comes despite other companies, such as Valve, moving towards the kernel, which is behind the popular OS Ubuntu, as well as other distributions such as Fedora Linux and is also a popular HTPC operating system. It is also the kernel used in supercomputers due to its customizable nature, and ability to address large amounts of memory while supporting extremely large numbers of physical cores.
The move is part of a company-wide restructuring plan that will see the firm laying-off 15% of its total workforce. AMD shares have fallen sharply since the firm signaled Q3 revenue would likely dip by up to 10 percent from Q2, blaming the drop in revenue on lower than expected sales of tablets, many of which use AMD APU and GPU technology.