AMD to Lay Off 15% of Staff; Earnings Miss
Advanced Micro Devices reported wider than-expected net loss and weaker-than-anticipated revenue on Thursday as a slowing PC industry creates challenges for chipmakers. The company also unveiled a restructuring plan to improve competitiveness that involves laying off 15 percent of its staff.
"The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD," Rory Read, the company's CEO said in a press release. "It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated."
Following the earnings announcement, the chipmaker's shares ticked higher in trading after the closing bell. (Click here to get the latest quotes for AMD.)
To deal with the changing PC market, AMD unveiled a restructuring plan which will include a 15-percent workforce reduction and site consolidations. AMD expects the action to save $20 million in the fourth quarter and $190 million in 2013.
For the fourth quarter, AMD expects revenue to fall 9 percent from the third quarter, plus or minus 4 percent.
The company reported a third-quarter net loss excluding items of 20 cents a share compared with earnings of 15 cents a share a year earlier.
Revenue fell 25 percent to $1.27 billion from $1.69 billion a year ago.
Analysts expected AMD to post a loss of 15 cents a share excluding items on revenue of $1.28 billion, according to a Thomson Reuters estimate.