Chipmaker AMD cutting 7 percent of global workforce

Markets Associated Press

AMD says it is will cut 7 percent of its global workforce in an effort to improve its profitability.

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The Sunnyvale, California-based chipmaker has been dealing with weaker revenue and profits for some time. It posted third-quarter results Thursday that missed expectations. The company expects the reductions and related real estate moves will save $85 million in 2015.

AMD employed 10,149 people as of the end of its third quarter. It plans to cut the jobs by the end of its fourth quarter. The company will take a $57 million charge, largely for severance, during that final quarter.

Shares of Advanced Micro Devices Inc. fell nearly 5 percent to $2.51 in extended trading Thursday following the announcement.