AMD, the world's second largest maker of computer microprocessors with an approximately 20 percent share of the global market, announced a "restructuring plan and implementation of operational efficiency initiatives" that involves handing out pink slips to 10 percent of the chip maker's workforce. The layoffs are part of an overall effort to save the company more than $200 million in 2012.
"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. "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 layoffs, which will occur across all functions of AMD's business on a global scale, will have an immediate effect on the chip maker's bottom line, saving the company $10 million in the fourth quarter of 2011, and another $118 million in 2012. AMD got to its greater than $200 million figure by including the implementation of operating efficiencies expected to save the company an additional $90 million.
This announcement comes two years after AMD spun off its manufacturing business, which at the time saw the elimination of 1,100 jobs. Rory Read was appointed CEO of AMD in August of this year.