AMD to lay off 10% of workforce
Move part of company streamlining to cut costs
AMD has announced that it will lay off 1,400 people, or approximately 10% of its workforce, as part of a restructuring plan to cut costs.
The layoffs will occur globally and will affect all levels and functional areas within the firm. Cuts are expected to be completed by the end of the first quarter of 2012, AMD said in a statement.
It's is still unclear how the cuts will be implemented in Europe, Middle East and Africa (EMEA) region, although the company expects the restructuring to yield operational savings of approximately $10 million throughout the remainder of Q4 2011 and $118 million in 2012.
Throughout 2012, AMD expects to save approximately $90 million in operating expenses in addition to the restructuring plan savings, resulting in more than $200 million savings in 2012, the company stated.
"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 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."
The company plans to reinvest a ‘significant portion' of its operational savings towards accelerating lower power, emerging markets, and cloud initiatives, according to its statement.