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AMD to cut 710 jobs as headwinds push Q3 revenues down 2%
2014-10-17 10:04:00| Telecompaper Headlines
(Telecompaper) AMD said revenues in the third quarter fell 2 percent from the year before to USD 1.43 billion, with the gross margin coming at 35 percent. The net profit sank to USD 17 million or 0.02 per share, from 48 million and 0.06 per share the year earlier, but up from the loss of 36 million reported in the second quarter. The company said it will cut 7 percent of its workforce (710 jobs) as part of a reorganization plan, with impairment costs going to USD 57 million in the fourth quarter and a restructuring charge of USD 13 million for the first quarter. The plan will result in operational savings of around 9 million in Q34 and USD 85 million next year. For the fourth quarter, AMD expects revenue to decrease 13 percent, plus or minus 3 percent, sequentially. New CEO Lisa Su said results for the company's Enterprise, Embedded and Semi-Custom segment were strong but that performance at Computing and Graphics segment was mixed based on challenging market conditions. She said these conditions were pushing the company and that AMD's top priority is to deliver leadership technologies and products as it continues to transform.
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