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The cuts are likely to be announced as early as next week, the report said, and are necessary because of weakness in the personal computer market, the main place where AMD processors are used.

AMD announced that its third quarter sales were lower than previously expected due to weaker demand across all product lines caused by macroeconomic difficulties. It said sales were expected to decline 10 percent sequentially in 3Q12 to $1.27 billion. This is considerably lower than the previous estimate of $1.38 billion and $1.4 billion, which itself would have been sequentially down.