Bad times for AMD and us as consumers the weaker the competition gets.
actually not so much, it seems like AMD are moving from a great engineer but potentially awful CEO/manager, to a guy who knows what he's doing. AMD, despite the debt, with stupidly strong GPU sales/performance, awesome APU's and crap but still huge volume Phenom/ath sales should be more profitable than they are.
Engineers CAN make great managers, they can also do the opposite, make no crucial decisions, get all exciting in a new architecture and let it drag on as they keep adding stuff, this is pretty much what feels like happens with Bulldozer.
They've got a proven CEO in who is good with profit margins, efficiency, general idea's of where the market is going, etc, etc.
AMD are moving back to I think a little above the number of employee's they had in late 2009. Very hard to tell who is getting canned and from what departments from the outside. But Bulldozer would be WELL on its way 2 years ago, and the GPU staff would be, again the vast vast majority would have been there since the ATi merger, which does suggest that a lot of the 1400 people being let go are in non critical area's, managers, marketing, etc, etc, which could have entirely no effect on the actual engineering staff nor the quality of what comes from AMD.
If they've identified 1400 engineers paid to highly because they've been their too long, it could end up very bad for AMD< or frankly very good, sometimes old engineers get stuck in their idea's and think in single thread and certain type of way, or they could be stunningly good engineers and it screws AMD.
But it does seem like they've more or less identified 1400 staff they can do without who are more waste than useful, and more efficiency, less managers, but still having the quality people there could simply mean much higher profits(touted at 120mil a year) which can all be ploughed into R&D or paying off debt which will also increase profit longterm(less interest payments).
Basically, good or bad, no one will have a clue for 2-3 years at least.