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The world’s number two chip manufacturer Advance Micro Devices has announced that it will lay off at least 500 workers in an attempt to save costs and return to profitability.
The latest round of job cuts by Sunnyvale-based AMD will affect 3 percent of its staff employed in departments across the world. Only the company’s manufacturing operations are expected to emerge unharmed which includes around 3000 employees and which is set to be spun off into a separate company.
The recent lay offs by AMD constitute its second biggest attempt at restructuring this year. so far the company has already cut 1600 jobs, replaced its chief executive officer announced plans to spin off factories which are a big drain on its resources.
AMD’s financial troubles go back before the onset of the economic downturn and much of them are reported to be self-inflicted. Over the past eight quarters The company has lost around $5.6 billion in production delays and costly acquisitions. These have not only resulted in heavy losses but also allowed bigger competitors like Intel Corp to gain market share. While Intel controls around 80% of the world market for computer microprocessors, AMD has the rest.
