Despite initially denying rumors about workforce reductions last month, AMD owned up to its plans in an update to its first-quarter financial results outlook posted today. In the update, AMD says it intends to "adjust its cost structure" by cutting around 10% of its staff. Those cuts will take effect by the end of the third quarter of this year, and as a result, the firm predicts it will record a "restructuring change" by the end of the second quarter.
In addition, AMD expects its revenue for the first quarter of this year to be below prior forecasts. In its Q4 results announcement in mid-January, AMD estimated Q1 '08 revenue to go down with seasonality. However, the chipmaker now says it believes Q1 revenue will be down 15% quarter-over-quarter because of "lower than expected sales across all business segments." On the upside, the company expects revenues to rise by 22% revenue compared to the first quarter of last year.
AMD will publicly disclose its final Q1 2008 results on April 17. Presumably, it will reveal more details about its job cuts and restructuring then, as well.
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