AMD to cut 10% of workforce in 2012, saving for emerging markets and the cloud

The world's second largest PC chipmaker Advanced Micro Devices (AMD) announced today that it will be cutting 10 percent of its workforce by the end of Q1 2012. That amounts to about 1,200 to 1,400 workers to be let go from its global workforce. The weak computer market has forced AMD to refine its cost structure and to consider investing in lower power, emerging markets and the cloud.

AMD has been struggling with setbacks this year, including the delay of important new chips due to manufacturing problems. Furthermore, worldwide PC sales have been stagnant while smartphones, tablets, and other mobile devices experienced strong growth. In order to stay competitive, AMD may have to enter these emerging markets.

The 10 percent cut in AMD's global workforce along with other cuts in operational costs will save the company a total of $200 million in 2012. That savings will then be reinvested into new technologies such as lower-powered chips for mobile devices or cloud computing.

[via ZDNet]