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AMD’s New CEO to Axe 1400 Jobs

On Thursday, microprocessor maker Advanced Micro Devices (AMD) Inc. announced that it is planning to cut down around 1400 jobs to bring its various costs under control.

The chief rival of Intel, AMD's layoff represents almost 10 percent of the total employees AMD has globally, which is 12,000.

This job cut will show immediate benefits, as per AMD's expectations. Figuratively, they are expecting $10 million as saving in the present quarter and $118 million in 2012, CNN reported. In the current quarter, the job cut process will cost more than $100 million to AMD.

This layoff has been seen as a major step by the newly appointed Chief Executive, Rory Read, who got appointed in this August.

Alex Gauna, analysts at JMP Securities, said that, "It's not too surprising given the operating background of the new CEO and this is exactly what you'd bring an outsider in to do, but their problems go far deeper right now," reported Times of India.

AMD is also planning to implement "operation efficiency initiatives" which will further save $90 million in 2012, CNN reported.