AMD to Cut More Jobs
Advanced Micro Devices Inc., which lost more than $254 million in the third quarter amid a 34 percent drop in sales, is expected to cut more jobs as part of a restructuring plan.
The company hinted at the jobs cuts during its Oct. 16 earnings call when officials said they expected to take a restructuring charge this quarter as part of its cost reduction plans.
AMD spokesman Drew Prairie on Wednesday confirmed that more layoffs were expected, but declined to give further details. He also would not say whether those details would be released during the companys meeting with financial analysts on Thursday.
AMD, of Sunnyvale, Calif., intends to cut about $300 million in operating expenses in 2003, Prairie said.
The chip maker in September closed two facilities in Austin, Texas, and laid off 2,300 workersabout 15 percent of its work forcealthough a spokesman at the time said the closings and job cuts had more to do with the facilities themselves than with the economy.
About 90 percent of the work done at the two fabrication facilities was foundry services, where AMD made chips for other companies. When demand from those companies for the chips started tailing off last year, it made no sense to keep those plants open, the spokesman said.