Advanced Micro Devices (AMD) has announced plans to restructure its business and has said that it will cut 7% of its global workforce, so the cut is estimated to be around 710 employees. The announcement came as AMD released its third quarter results, returning to profit in the quarter from a net loss of $36 million in Q2, though Q3’s net profit of $17 million was 64% lower year on year. (See Finance Results in this issue.)
The restructuring plan will be largely implemented during Q4 and is expected to be completed by the end of the quarter. As AMD’s headcount is reduced, there will also be a reduction in the company’s real estate footprint. Dr. Lisa Su, who was named as AMD’s new CEO and president at the beginning of this month (Display Monitor Vol 21 No 40), said that this was the right step to improve the company’s profitability and return to long-term growth.
The company expects to make cash payments related to these actions of approximately $34 million in Q4 2014 and $20 million in the first half of 2015 and believes that the measures will result in operational savings of approximately $9 million in Q4 2014 and approximately $85 million in 2015.