AMD is anticipating gross margin to be 31% less during the third quarter
Chip maker Advanced Micro Devices (AMD) is planning to lay off nearly about 2,340 jobs, 20% to 30% of its total workforce of about 11,700.
The Chip maker’s move follows an alert that its quarterly revenue is expected to decline due to a weak global economy.
AMD is anticipating gross margin to be 31% less during the third quarter over the earlier expectation of 44%.
According to All Things D, AMD could reveal the lay off by coming week that may include employees from engineering and sales, and is expected to be more enough to require AMD to scale back several products.
In 2011, the firm had revealed 10% reduction in workforce to about 1,400 employees, in a bid to reduce operating expenses by $118m in 2012, and by $10m during the fourth quarter of 2011.
The chipmaker has also been overwhelmed by implementation delays that offered gains to Intel and to graphic chip rival Nvidia.
According to Gartner, total global PC shipments fell 8.3% during the third quarter of 2012 when compared to the same period in 2011to 87.5m, while the tablet sales are expected to rise 53% in 2012.