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AMD to cut 15 percent of work force
SUNNYVALE, CALIF. (REUTERS) - Microprocessor maker Advanced Micro Devices Inc. on Thursday said it was cutting 15 percent of its work force as part of an effort to trim expenses by $350 million in 2003.
The company said it will reduce its global staff by 2,000 positions by the end of the second quarter of 2003, contributing to a charge of "several hundred million dollars" in the fourth quarter.
Some 1,000 employees were notified on Thursday, AMD said in a news release, with the cuts spanning company operations in the United States, Europe and Asia.
AMD shares were up 1.9 percent, or 12 cents, at $6.46 in Thursday midday trading on the New York Stock Exchange.
AMD Chief Financial Officer Robert Rivet last week warned analysts that layoffs would be required as part of the company's cost-cutting program and said the reductions would be "significant."
Rivet had also said he expected one-third of the restructuring charge to be in cash.
The company has been impacted by a weak market for personal computers, a build-up of its chips and heavy competition from Intel Corp., which dominates the microprocessor market.
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