AMD Announces Reduction in Work Force
SUNNYVALE, CA --
AMD (NYSE: AMD) today announced that it will reduce its global work force by approximately 2,000 positions, or approximately 15 percent, by the end of the second quarter of 2003. Today’s announcement is part of the company’s ongoing strategy to reduce its breakeven point and reduce expenses by $350 million in 2003. Approximately 1,000 affected employees were notified today. As previously announced, the company will take a restructuring charge in the fourth quarter of several hundred million dollars.
Today’s reduction in work force was implemented across AMD operations in the United States, Europe and Asia.
“Our success is predicated upon a sound financial base,” said AMD President and CEO Hector Ruiz. “As part of our ongoing strategy, we are taking decisive measures to reduce operating and capital expenditures. One of those measures is a reduction in work force. While painful and unfortunate, today’s action will help to position AMD so that we can take full advantage of the eventual market recovery. Over the next 180 days, we are unleashing a number of intensely competitive products and solutions to the marketplace that will enable us to compete in segments of the market where we have not yet been before. In essence, we are confident that we are taking the steps needed to solidify our financial position while extending our competitive reach across broad segments of the market.”
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor’s 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE: AMD).
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