We have learned that so far AMD has not cut any significant people from the ATI part of its operation. Most of the 500 that are going in this round are going from the CPU side and more than 150 are from the headquarters in Austin.
ATI is executing flawlessly and only a mad man would cut them now, when they have winning products and have Nvidia by its gut.
AMD is already working on its new generation graphics products and they hope to be able to beat Nvidia again, this time in the 40nm arena.
AMD is cutting its staff due to predictions that 2009 will be a year of recession, full of slowdowns, and it's highly likely that IT will have to slow down with the rest of the world, which definitely means less computer, CPU and graphics card sales in the upcoming year.