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.