Page last updated at 21:17 GMT, Tuesday, 8 April 2008 22:17 UK

AMD to cut 1,600 of its employees

AMD Athlon 64 processor
AMD hopes its acquisition of ATI will improve its graphics capabilities

Shares in chipmakers have been hit after Advanced Micro Devices (AMD) warned of lower-than-expected first quarter sales.

AMD said it would cut 10% of its workforce, which means more than 1,600 jobs will go.

It is struggling to compete with Intel while trying to get the full benefits from its $5.6bn (2.8bn) acquisition of the graphic chip firm ATI Technologies.

AMD shares trading in New York closed down 6.3% at $6.03.

Product delays to AMD's Opteron server chip have also hit the firm.

Intel has not had an easy time competing either. Last year, it cut about 10% of its own workforce, which meant a reduction in jobs of about 10,500.


SEE ALSO
Increasing laptop sales boost AMD
19 Oct 07 |  Business
Price battle causes losses at AMD
20 Apr 07 |  Business
Price cuts continue to hurt Intel
17 Apr 07 |  Business
AMD agrees to buy ATI for $5.4bn
24 Jul 06 |  Business
AMD set to lift output in Germany
30 May 06 |  Business
Dell boosted by chip announcement
18 May 06 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific