Chipmaker AMD cutting 7 percent of global workforce

MarketsAssociated Press

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

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.

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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.