AMD cuts 500 jobs

06 Nov 2008 09:05

The chipmaker has reduced its workforce by around three percent to reduce expenses, in the second round of layoffs this year

AMD announced on Wednesday that it had laid off 500 employees, or about three percent of its workforce, in an effort to reduce expenses.

The layoffs are the second round of job cuts this year at the troubled chipmaker. AMD announced in April that it would cut 10 percent of its workforce, or about 1,650 jobs.

The current round of job cuts comes on the heels of a management and structural upheaval at the company. AMD chief executive Hector Ruiz announced in July that he would step down from the helm of the company, and that designated successor Dirk Meyer would take over. AMD announced in October that it would split into two companies: one for designing chips and the other for manufacturing them.

The job cuts will affect all departments in the company, except for the 3,000 employees within the new $5.7bn (£3.6m) manufacturing entity, The Foundry Company.

In October, AMD surprised analysts by announcing a smaller-than-expected third-quarter net loss. The company reported a net loss of $67m, or 11 cents per share. Analysts had expected a third-quarter loss of 40 cents per share on $1.48bn in revenue. The company also reached operating profitability in the quarter.

Story URL: http://news.zdnet.co.uk/itmanagement/0,1000000308,39543007,00.htm