- Nov 7, 2004
DIRK MEYER, AMD CEO, has been knifed in what has been described as a "mutual agreement" with the company's board of directors.
According to the Wall Street Journal Meyer cleaned out his desk yesterday and AMD announced that it was seeking a new CEO to boost the company's growth. Shares plummeted 4 per cent in after-hours trading.
Chief Financial Officer Thomas Seifert will become interim CEO, effective immediately, as the company looks for a permanent replacement.
Meyer, 49, headed the team that developed one of AMD's most successful chips before becoming CEO in 2008 and his exit has floored many analysts.
Gleacher & Company analyst Doug Freedman told Reuters that the outfit must be suffering from a loss of momentum. Of course that does not explain why they did not see the writing on the wall for Meyer.
AMD insists that there were no financial or performance issues with Meyer, but equally they did not say how long this plan has been in the works.
However deep throats with the AMD board said that Meyer was brilliant at stabilizing Chimpzilla and had turned it around. However now it wanted someone to accelerate the company's growth.
Word on the street is that it was the shift to mobile chips that did it for Meyer and that he did not see the transition to x86 chips quick enough.
Nvidia's new Tegra 2 mobile chip was showcased in several new smartphones and tablet devices at the Consumer Electronics Show in Las Vegas and this did not help Meyer.
AMD bought ATI in 2006 for $5.4 billion and has much of the technology to develop chips for mobile computing but it did not optimise it for the tablet market and for lightweight mobile computing. They decided to stay traditional and go after notebooks.
Meyer's claim to fame was that he oversaw AMD as it spun off its manufacturing arm into a separate company. Although that cunning plan was designed by his processor.
He turned AMD around but to be honest they havent really released anything since thats improved for the company.