Friday, November 15, 2002
AMD announced it will cut its global workforce by 2,000 positions, or 15%, by the end of next June as the company struggles to lower expenses.
The reduction is part of an ongoing effort to bring operating and capital expenses in line with depressed business levels. AMD expects the move to save $350 million in 2003. The company said it will take a restructuring charge against earnings of "several hundred million dollars" in the fourth quarter of 2002.
"While painful and unfortunate, today's action will help to position AMD so that we can take full advantage of the eventual market recovery," said president and chief executive Hector Ruiz in a released statement.
"Over the next 180 days, we are unleashing a number of intensely competitive products and solutions to the marketplace that will enable us to compete in segments of the market where we have not yet been before," Ruiz said. "In essence, we are confident that we are taking the steps needed to solidify our financial position while extending our competitive reach across broad segments of the market."
Approximately 1,000 employees were let go today, according to the Sunnyvale, Calif. chip maker
By: DocMemory
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