Advanced Micro Devices (AMD) has confirmed plans to lay off 7% of its global workforce amidst poor performance during the third quarter of 2014.
About 710 jobs from its global headcount of 10,149 will be axed by the end of Q4, which would offer AMD with savings of $9m this year and $85m next year.
AMD president and CEO Dr. Lisa Su said: "While decisions that impact the size of our global team are never entered into lightly, this is the right step to ensure we prioritize our resources and engineering investments in our highest-priority opportunities that can drive improvedprofitability and long-term growth."
The company is expected to incur a restructuring and impairment charge of about $57m in Q4 2014, primarily related to severance, and a restructuring charge of approximately $13m in 1H 2015, primarily related to real estate actions.
During Q3, the US chipmaker reported 2% year over year drop in revenue to $1.43bn, in the midst of ‘challenging market conditions’.
The chipmaker’s operating income and net income for the quarter reached $63m and $17m respectively.
Lisa Su added: "AMD’s third quarter financial performance reflects progress in diversifying our business.
"Our Enterprise, Embedded and Semi-Custom segment results were strong; however, performance in our Computing and Graphics segment was mixed based on challenging market conditions that require us to take further steps to evolve and strengthen the financial performance of this business.
"Our top priority is to deliver leadership technologies and products as we continue to transform AMD."
