AMD to cut 15 percent of work force

Zardon · Nov 14, 2002, 07:01 PM

SUNNYVALE, CALIF. (REUTERS) - Microprocessor maker Advanced Micro Devices Inc. on Thursday said it was cutting 15 percent of its work force as part of an effort to trim expenses by $350 million in 2003.

The company said it will reduce its global staff by 2,000 positions by the end of the second quarter of 2003, contributing to a charge of "several hundred million dollars" in the fourth quarter.

Some 1,000 employees were notified on Thursday, AMD said in a news release, with the cuts spanning company operations in the United States, Europe and Asia.

AMD shares were up 1.9 percent, or 12 cents, at $6.46 in Thursday midday trading on the New York Stock Exchange.

AMD Chief Financial Officer Robert Rivet last week warned analysts that layoffs would be required as part of the company's cost-cutting program and said the reductions would be "significant."

Rivet had also said he expected one-third of the restructuring charge to be in cash.

The company has been impacted by a weak market for personal computers, a build-up of its chips and heavy competition from Intel Corp., which dominates the microprocessor market.

Nov 14, 2002, 07:01 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	AMD to cut 15 percent of work force SUNNYVALE, CALIF. (REUTERS) - Microprocessor maker Advanced Micro Devices Inc. on Thursday said it was cutting 15 percent of its work force as part of an effort to trim expenses by $350 million in 2003. The company said it will reduce its global staff by 2,000 positions by the end of the second quarter of 2003, contributing to a charge of "several hundred million dollars" in the fourth quarter. Some 1,000 employees were notified on Thursday, AMD said in a news release, with the cuts spanning company operations in the United States, Europe and Asia. AMD shares were up 1.9 percent, or 12 cents, at $6.46 in Thursday midday trading on the New York Stock Exchange. AMD Chief Financial Officer Robert Rivet last week warned analysts that layoffs would be required as part of the company's cost-cutting program and said the reductions would be "significant." Rivet had also said he expected one-third of the restructuring charge to be in cash. The company has been impacted by a weak market for personal computers, a build-up of its chips and heavy competition from Intel Corp., which dominates the microprocessor market.