BUSINESS
04/15/2008 05:12 am ET Updated May 25, 2011

Chip Maker AMD To Cut 1600 Jobs

The chip maker Advanced Micro Devices said Monday that it would cut 10 percent of its work force and gave a first-quarter revenue estimate below Wall Street expectations, sending its shares down 5 percent.

Based on A.M.D.'s work force of 16,800, the cuts at the second-largest maker of computer processors would amount to about 1,680 jobs, a spokesman Drew Prairie said.

Citing lower-than-expected sales across its business, A.M.D. estimated revenue for the quarter ended March 29 at about $1.5 billion, well below the average analyst estimate of $1.62 billion, according to Reuters Estimates.

A.M.D.'s estimate would be a 22 percent rise from the year-ago period, but a 15 percent drop from the fourth quarter of 2007.

An analyst at the CRT Capital Group, Ashok Kumar, said that a weakening economy and tough competition from a larger rival Intel were causing A.M.D.'s revenue shortfall.

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