Dive Brief:
- AMD announced it will cut about 500 white collar jobs as part of a restructuring plan, Reuters reports.
- The job cuts will take place across AMD's global operations including Austin, Texas, and Sunnyvale, California.
- AMD said it expects to save about $58 million in 2016 from the restructuring plan.
Dive Insight:
Weak demand for chips and tough competition drove its decision to restructure, AMD said. In addition to layoffs, the restructuring plans include outsourcing select IT and application development services. AMD will not, however, shut down any manufacturing operations.
Spokesman Drew Prairie said the company expects to take a charge of $42 million.
In July, AMD reported its second-quarter revenue fell 35% from the year before.
Research firm Gartner reported in August that PC shipments fell 9.5% from the second quarter of 2014 to the second quarter of 2015. The firm predicts PC demand will continue to slow for several more years. Chip makers such as AMD will likely continue to feel the effects of the slowdown and make adjustments in their workforce in response.
