AMD to Cut 5% of Workforce
October 01 2015 - 6:00PM
Dow Jones News
Advanced Micro Devices Inc., reacting to a continued slump in
its business, said it will cut its workforce by about 5% as part of
a restructuring to trim costs at the chip maker.
The job cuts will affect slightly less than 500 employees, an
AMD spokesman said. The company said it expects to record about $42
million in charges because of the moves and save about $58 million
in expenses in 2016.
AMD, based in Sunnyvale, Calif., has long been known as the
underdog maker of microprocessor chips to Intel Corp. It has also
branched out into sales of graphics chips, a technology used to
render images in videogames and other software.
The company has suffered due to recent declines in sales of
personal computers, which use microprocessors, as well as market
share losses to Intel. It reported a loss of $181 million in the
second quarter, while revenue declined 36% to $942 million.
As part of the restructuring, AMD said it will take steps that
include streamlining its computing and graphics chip sales efforts,
creating regional presidents to oversee sales in Europe and China
and outsourcing its internal technology support and application
development.
The AMD spokesman said there is no change to the company's
product-development plans.
Write to Don Clark at don.clark@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 01, 2015 17:45 ET (21:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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