More cuts: AMD to reduce global workforce by 5%


— 3:47 PM on October 1, 2015

AMD plans to reduce its global workforce by about 5%, according to a Form 8-K filing that became public today. The layoffs are part of a larger restructuring plan that includes the outsourcing of functions like IT services and application development, as well as the consolidation of some of the company's real estate assets.

As part of the restructuring, AMD expects to take a charge of about $42 million, $41 million of which will be recorded in the third quarter of the company's fiscal year 2015. The filing says about $31 million of those costs is related to severance and benefits, $1 million is related to real estate consolidation, and $9 million is from "intangible asset related charges associated with the impairment of certain software licenses that have ongoing payment obligations."

AMD expects to realize savings of about $2 million and $7 million from its plan in the remaining quarters of its fiscal 2015, along with savings of $58 million over the course of its fiscal 2016.

   
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