Advanced Micro Devices Inc. said Thursday afternoon that it is laying off about 1,400 workers in an effort to lower costs.
In a statement after the market close, AMD said it expects the restructuring move to result in operational cost savings of about $10 million in the current quarter and $118 million in 2012.
The semiconductor firm is working to keep up with a shifting marketplace that is moving from PCs to handheld devices, as well as continuing to compete with arch-rival Intel Corp.
A company spokesman acknowledged in an email that the layoffs will involve about 1,400 workers.
AMD had a total workforce of 12,019 as of the end of the third quarter.
“Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD’s competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth,” said Rory Read, AMD’s recently hired president and CEO, in a statement.
“The actions we are taking are designed to improve our ability to consistently address the needs of our global customer base and stake leadership positions in lower power, emerging markets and the cloud,” he added.
The Sunnyvale, Calif.-based company said it expects to take a charge of $101 million in the fourth quarter and another $4 million in 2012 as part of the restructuring.
Besides job cuts, AMD also will seek “termination of existing contractual commitments.” A company spokesman said the restructuring will involve some site “consolidations,” but no major office closures.
The job cuts will take place “across all functions globally and is expected to be substantially completed by the end of the first quarter of 2012,” according to the chip maker.
AMD named Read to the CEO slot on Aug. 25, after going nearly 10 months without a chief executive after Dirk Meyer was forced out in January.
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