Struggling Advanced Micro Devices will on Thursday announce massive layoffs that could see nearly a third of its workforce shown the door, sources with knowledge of the company's plans have revealed this week.
The layoffs will primarily affect AMD's US workforce and the downsizing will mainly target employees working in platform engineering, mobile and embedded chip development, and sales, said one source who asked not to be named.
The process will begin Thursday, the source said, and continue through to 25 October. AMD announces its third-quarter earnings tomorrow and has already indicated that its results were poor over the past three months.
The company already underwent a round of layoffs that saw its workforce reduced by 10 per cent between last November and the early part of this year.
AMD declined to comment. The company currently employs about 11,700 people worldwide.
The impending layoffs have also been reported by All Things D, Reuters, Semi-Accurate, CNET, and other media outlets in recent days. Accounts differ on the scale of the downsizing, with some outlets reporting that about 20 per cent of the workforce will be let go and others saying the figure could be as high as 30 per cent.
One source named the higher figure, which would mean around 3,500 AMD employees will be let go, while a second source said the layoffs would affect between 20 per cent and 30 per cent of the chip maker's workforce.
AMD has struggled in the past year under new management led by CEO Rory Read, whose tenure so far has been marred by disappointing quarterly performances and a series of executive defections, including last month's departure of CFO and one-time interim CEO Thomas Seifert.