AMD which is having a hard time this year regarding sales and growth, has shut down its Operating System Research Center and fired all its 25 employees, which include several Linux kernel developers. The news surfaced when several core kernel developers updated their email address to use a non-AMD domain. This is part of company's effort to cut its staff by 15 percent to reduce costs and put growth on right track.
While the Operating System Lab has been shut down, the company will continue to offer developement for its open-sourced Linux graphics drivers. Interestingly, the lab employees worked on integrating AMD products with the Linux platform and the company had some big clients like Red Hat and Suse.
The Linux server market is expanding day by day, and more people are using Linux-based OSes on phones, tablets and desktop, one can argue whether it's the right decision taken at the right time. How severely AMD will be hit also depends much on ARM's entry into the server space which will make life even harder for AMD.
The OSRC lab had worked with several important areas in the Linux kernel. This include new CPU/chipset enablement, compiler optimizations, virtualization improvements and more. The news was confirmed by The H-Open Source associates at LinuxCon which is being held in Barcelona.