AMD to Cut 7 Percent of Workforce to Improve Profitability

AMD to Cut 7 Percent of Workforce to Improve Profitability
Advertisement
AMD says it will cut 7 percent of its global workforce in an effort to improve its profitability.

The Sunnyvale, California-based chipmaker has been dealing with weaker revenue and profits for some time and posted third-quarter results Thursday that missed market expectations.

The company expects the reductions and related real estate moves will save $85 million in 2015.

AMD employed 10,149 people as of the end of its third quarter. It plans to cut the jobs by the end of its fourth quarter. The company will take a $57 million charge, largely for severance, during that final quarter.

Shares of Advanced Micro Devices Inc. fell nearly 5 percent to $2.51 in extended trading following the announcement. As of Thursday's close, the stock is down by nearly one-third in the year to date.

It is the first move by AMD's new CEO, Lisa Su, a former chief operating officer who replaced Rory Read just over a week ago.

AMD also said Thursday that it earned $17 million, or 2 cents per share, in its most recent quarter. Its earnings, adjusted for amortization costs, came to 3 cents per share. Analysts surveyed by Zacks Investment Research were anticipating earnings of 4 cents per share. A year ago the company earned $48 million, or 6 cents per share.

The chipmaker posted revenue of $1.43 billion in the period, down from $1.46 billion last year and also short of Street forecasts. Analysts expected $1.47 billion, according to Zacks.

For the fourth quarter, AMD expects revenue to decrease 13 percent, plus or minus 3 percent, from the third quarter. Analysts surveyed by FactSet expect revenue of $1.48 billion, which implies growth of 3.7 percent.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Twitter's 'Audio Card' Lets Users Stream SoundCloud Content
Personally Tech With Author and Games Industry Veteran Ian Livingstone
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »