Chip maker AMD will detail a major restructuring plan when it briefs market watchers today, including details of what analysts expect to be a 10 to 15 per cent reduction in headcount.
After five consecutive loss-making quarters, the company is looking for ways to trim more than $350m from its budget next year.
"We want to lower our break-even point," AMD spokesman Morris Denton told reporters.
The entire processor industry has been battered by the IT downturn, and this year has been especially difficult for AMD. The company has twice delayed the release of its next-generation Hammer chip family.
The 64-bit device is to be the core of AMD's future product lines, and the company now expects the desktop version of Hammer to be ready in late spring or early summer next year.
The server version, called Opteron, will probably ship sometime in early April.
Last year, AMD closed two plants in Austin, Texas and restructured another in Penang, Malaysia, shedding 2,300 jobs, or about 15 per cent of its total workforce at the time.
Analysts are now expecting the company to lay off an additional 10 to 15 per cent of its current workforce of 13,000.
Some have even indicated that AMD is combing through every part of its business trying to find ways to consolidate offices and real estate, and farm out functions such as payroll and warehousing.
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