AMD Job Cuts Are Expected

http://online.wsj.com/article/SB10000872396390443294904578053580146698560.html

Advanced Micro Devices Inc. is preparing significant layoffs following a projected shortfall in its third-quarter financial results, a person familiar with the situation said.

The cuts will most likely range from 10% to 20% of the company's workforce, which stood at more than 11,700 at the end of the second quarter, this person said.

AMD, of Sunnyvale, Calif., has long been Intel Corp.'s much smaller rival in microprocessor chips for personal computers and server systems. On Thursday AMD projected a 10% decline in third-quarter revenue from the second period, compared to its prior projection of a sequential decline of 1% to 3%. AMD also lowered its gross margin guidance to 31% from its earlier 44% target.