AMD sheds jobs, closes manufacturing plants

Declining demand for microprocessors is causing chip manufacturer AMD to cut 2300 jobs, about 15% of its work force. The company will also close two of its chip making plants.

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By  Mark Sutton Published  September 26, 2001

Declining demand for microprocessors is causing chip manufacturer AMD to cut 2300 jobs, about 15% of its work force. The company will also close two of its chip making plants.

The move is being made to cut costs, according to a statement released by the company. Around 1000 employees will be made redundant in Texas, due to the closure of the factories. The other redundancies will come from restructuring of operation in Penang, Malaysia.

The move will cost the company between $80 and $110 million, although AMD hopes to save $125 million per year thereafter. The redundancies will be completed by the end of Q2 2002.

The FABs that are being closed, FABs 14 and 15, are AMDs oldest FABs, and are no longer involved in processor or flash-memory manufacturing.

“These actions will allow us to reduce costs without impairing our new product development activities in pursuit of long-term growth opportunities. We will focus our organisation around our two most promising opportunities—flash memory devices and PC processors,” said WJ Sanders III, chairman and chief executive officer. “We will treat all employees affected by these actions with fairness and respect, consistent with our values and our commitment to our people.”

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