Chipmaker Advanced Micro Devices Inc (AMD) announced plans on Thursday to slash 15 percent of its workforce in a cost-cutting move in response to a weak market for personal computers.
AMD, the No. 2 PC chipmaker behind Intel, said it lost US$150 million in the third quarter and that revenues slumped 25 percent year-on-year to US$1.27 billion.
AMD and others have been hit hard by weak sales of PCs as consumers shift to tablets and other mobile devices, a trend moving faster than the industry had anticipated.
“The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD,” AMD president and chief executive Rory Read said.
“It is clear that the trends we knew would reshape the industry are happening at a much faster pace than we anticipated,” he said.
“As a result, we must accelerate our strategic initiatives to position AMD to take advantage of these shifts and put in place a lower-cost business model,” he added.
The move comes a year after another job-cutting plan in which AMD announced it would trim 10 percent of its workers, or 1,400 jobs.
AMD said the new reorganization would start in this quarter and would result in operational savings of about US$20 million in the quarter and US$190 million next year.
“Our restructuring efforts are decisive actions that position AMD to compete more effectively and improve our financial results,” Read said.
“Reducing our workforce is a difficult, but necessary step to take advantage of the eventual market recovery and capitalize on growth opportunities for our products outside of the traditional PC market,” he added.