AMD To Trim Workforce By About 5%

(RTTNews) - Chipmaker Advanced Micro Devices, Inc. (AMD) said in a regulatory filing Thursday that it has adopted a restructuring plan that provides for a workforce reduction of about 5% of the company's global workforce.

The plan, which is focused on the company's ongoing efforts to simplify its business and align resources around its priorities of building great products and deepening customer relationships, includes organizational actions such as outsourcing certain IT services and application development. The plan also anticipates a charge for the consolidation of certain real estate facilities.

The Sunnyvale, California-based company said it currently expects to record restructuring and asset impairment charges totaling about $42 million resulting from the plan. The company expects to record a majority of the restructuring charge in the amount of about $41 million in the third quarter of fiscal year 2015.

The savings from the plan are anticipated to be about $2 million and $7 million in the third and fourth quarters of fiscal year 2015, respectively. The company anticipates savings of about $58 million in fiscal year 2016.

The actions associated with the plan are expected to be substantially completed by the end of fiscal year 2016.