AMD sets up restructuring plan, to sack more than 1,000 employees in next 5 months

- Friday, November 4, 2011

AMD sets up restructuring plan, to sack more than 1,000 employees in next 5 months

US chip manufacturer AMD has announced a restructuring plan to increase its opex savings, reducing its workforce by 10% across all functions globally by end-1Q12.

The move could result in some 1,200 dismissals, according to international media reports.

The cost restructuring is aimed to increase competitiveness and accelerate the company's growth, as well as "strengthening the company's competitive positioning," AMD said.

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"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," AMD CEO Rory Read said.

AMD predicts that the plan will result in US$10mn in savings in the fourth quarter of 2011 and US$118mn in 2012.

The company intends to funnel large part of those savings to investments in strategies for lower power, emerging markets and cloud technology.