Phil Hester left AMD on Friday on good terms to pursue another unannounced opportunity. Hester joined AMD in 2005 and previously worked for at IBM Corporation for 23 years. AMD said it will not replace Hester with a new CTO. The former CTO is the latest in a string of executives to depart as AMD has fallen on hard times.
In August, sales chief Henry Richard left AMD to join Freescale Semiconductor and David Orton, the former chief executive of ATI resigned in July. The ATI graphics chip maker was acquired by AMD for $5.4 billion.
The struggling chip maker also said it will cut 10 percent of its workforce to regain its footing after a technical glitch caused delays in its new line of microprocessors.
The technical glitch, found in its quad-core microprocessor, has delayed the chip's availability for several months, leaving AMD's product lineup at a distinct disadvantage to Intel Corporation.
AMD said that Hester was responsible for setting the company's long-term product strategy rather than for the development of the current microprocessors.
"We're trying to point out that his departure is not related to anything related to products or company performance," said AMD spokesperson Robert Keosheyan.
Keosheya also said that Hester's exit is not related to AMD's announcement that chip maker will lay off 10 percent of its workforce, or roughly 1,600 employees.
AMD also said Monday that its sales in the first quarter would be less than previously expected. Analysts expect AMD to report a first-quarter loss of 51 cents a share when the company reports its financial results this week.
In 2007, AMD lost $3.38 billion -- including a large write down for ATI -- on revenue of $6 billion.
Phil Hester left AMD on Friday on good terms to pursue another unannounced opportunity. The company also said that his departure is not related to products or company performance and that it is unrelated to the 10 percent workforce reduction that was announced on Monday.