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AMD optimizes cost structure to enhance competitiveness - AMD optimizes cost structure to enhance competitiveness
Fri, November 04 2011 | 1:56PM | PermaLink Feedback?
AMD has announced a restructuring plan and implementation of operational efficiency initiatives designed to strengthen the company's competitive positioning. AMD expects that the restructuring plan will result in operational savings, primarily in operating expenses, of approximately US$10 million in the fourth quarter of 2011 and US$118 million in 2012, primarily through a reduction of its global workforce by approximately 10% and the termination of existing contractual commitments. The workforce reduction will occur across all functions globally and is expected to be substantially completed by the end of the first quarter of 2012. Based on anticipated savings from the restructuring plan, AMD expects fourth quarter 2011 operating expenses will be approximately US$610 million.

The company expects to reinvest a significant portion of the savings to fund initiatives designed to accelerate AMD's strategies for lower power, emerging markets, and the cloud.

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