Looking at the c*ckups of AMD don't be too suprised if it's 1400 people from R&D who know what they're doing (therefore getting high pay) getting the chop while nobody at management level lose their jobs.
Many a company trim from the wrong areas during bad times.
And many good CEO's trim the fat from the right area's, the question is ultimately will AMD do better, not will we get the products WE want(including me) from AMD. AMD could become a 12billion a year profits company, who don't make high end cpu's or gpu's but end up buying out ARM and taking the entire mobile segment, who knows.
Thing is so far it very much looks like minimal engineers gone, some of the bigger name VP's who are probably on very big salary's, and almost the entire PR department is gone.
Frankly in the age of the Internet, PR should be able to be done by very small teams and is often outsourced effectively to PR companies who do what they do better.
That isn't to say PR to some degree isn't important, review sites getting questions answered really shouldn't take more than a couple guys, trade shows and having people explain and talk up future products to the OEM's who will buy them by the millions is important but again, this shouldn't take a whole lot of guys. THe trade shows are dying off because, unlike 20 years ago when they were huge, the internet has made 90% of the information available at trade shows old news, even "new" products are pretty much old news.
What I HOPE happens for AMD is that they push HARD into the professional market, you only have to look at Nvidia to see how successful they are, their desktop gpu's don't make a huge amount of profit these days, but when you sell the same products to the professional market in half decent numbers, at ridiculous mark ups, there is crazy profits there.
Even if AMD didn't do that well but put SOME effort in they should drastically increase profits, if they pushed really hard AND did really well AND beat Nvidia on prices they could make a freaking killing.
Same goes for servers, AMD need to get competitive in servers and the money markets for GPU's.
There are plenty of rumours they are going towards ARM/mobile markets though, and there isn't anything wrong with that, its a hard market with small margins, but huge volume now and there isn't anything preventing them doing well, expansion isn't bad, new markets aren't bad. What I hope is they aren't going to kill off area's like high end cpu's and go after mobile exclusively.
AMD could take 2-3 years before we have any idea what direction the company is trying to go in. The next gen HD7000, and hte HD8000 and probably the HD9000 series will have had a lot of work put into them, so even if they change their long term targets, they won't throw away the work they've done and you'll have projects already well underway to finish before significant changes might be seen.