The cuts will be company-wide and will affect various departments, including sales, marketing and administration. Reportedly, relatively few of those cuts will be in engineering. Most of the job losses will be in the US.
Shares in the chipmaker rose more than 3.5% on the news to close at $14.05 on the Nasdaq yesterday.
The company posted a 30% sequential drop in revenues during the first quarter, which was a 7% decline year-over-year, in the face of tough competition from chief rival Intel. At the time, AMD said it expected to cut about 5% of its total workforce, or about 800 workers, over time.
Intel also is in the throws of a major restructuring. In September it announced that more than 10,000 of its workers worldwide would lose their jobs, as part of its efforts to save $5bn during the next couple of years.
For AMD, this is the second wave of job losses. Last November, AMD said it would cut 375 workers as a result of its $5.4bn purchase of Canadian graphics chipmaker ATI Technologies, which was first announced last July.
