PC chipmaker AMD said it will cut its workforce by 15 percent in a bid to reduce operating expenses, its second round of layoffs in less than a year as it struggles with a weak global economy and a consumer shift toward tablets.
The chipmaker, with a staff of nearly 12,000, said in a statement it expects its restructuring actions, which will also include site consolidations, to result in operational savings of $US190 million ($A183 million) next year. It expects to record a restructuring expense in the fourth quarter of about $US80 million.
Like its larger rival Intel, AMD was caught flat-footed in recent years with the emergence and fast growth of mobile devices like Apple's iPad.
Tablets and smartphones, once considered a niche market by Intel and others, are fast gaining favour with consumers and eating into sales of laptops and desktop computers, while a slowing global economy is dampening spending in general.
AMD posted third-quarter revenue of $US1.3 billion, down from $1.7 billion a year ago and a net loss of $US157 million, or 21 cents a share, compared with a year ago profit of $US97 million, or 13 cents a share.
Analysts had expected AMD to post $US1.9 billion in revenue for the third quarter, according to Thomson Reuters I/B/E/S.
AMD estimated fourth-quarter revenue would fall 9 percent from the third quarter, plus or minus 4 percent.
AMD's stock rose 3.4 percent in extended trade after closing down 5.4 percent at $US2.62.
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