Advanced Micro Devices unveiled a restructuring plan today that will reduce its global workforce by 10 percent, or about 1,400 jobs, by 2012.
The layoffs, which are expected to save the company $200 million, represent the first major action by new CEO Rory Read, who took the helm of the chipmaker in August.
"Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD's competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth," Read said in a statement. "The actions we are taking are designed to improve our ability to consistently address the needs of our global customer base and stake leadership positions in lower power, emerging markets and the cloud."
AMD continues to lose chip market share to rival Intel. AMD accounted for 10.1 percent of global microprocessor revenue in the first quarter of this year, falling from the 11.8 percent share during the same period last year and down from 10.9 percent in the fourth quarter of 2010, according to an IHS iSuppli report.
During that time, Intel claimed 82.6 percent of global microprocessor revenue, up 2 percentage points from the same period last year and an increase of 1.6 points of share from the fourth quarter, iSuppli said.
In the second quarter, Intel accounted for 81.8 percent of the global chip market, up 1.1 percent from 80.7 percent in the second quarter of 2010, according to data from HIS iSupplie. Meanwhile, AMD's share dropped 1.1 percent to 10.4 percent.
Read, who was president and chief operating officer of the Lenovo Group, took over for Dirk Meyer, who stepped down as CEO of the Sunnyvale, Calif.-based chipmaker in January.