AMD raises layoff count
30 Dec, 2008, 1003 hrs IST,REUTERS

SAN FRANCISCO: US chip maker Advanced Micro Devices Inc said that it laid off 600 workers, 100 more than first announced, and was taking yet anoth
er charge related to its $5.4 billion purchase of ATI Technologies Inc.

AMD said it cut 600 employees in its most recent quarter, compared with the 500 it had originally planned. As a result, the company now expects to record $70 million in restructuring charges, versus the $50 million it previously predicted.

In addition, the new cost reductions would result in more charges in the first half of 2009, although AMD would not provide an estimate.

The chip maker also said it would take a goodwill impairment charge related to its 2006 acquisition of graphics chip maker ATI. AMD said its decision was "based on the results of an updated, long-term financial outlook" for the business, according to a filing with US securities regulators.

The company said it could not estimate the size of the charge, which would be material and non-cash, according to the filing with the US Securities and Exchange Commission. A company spokesman declined to provide any further detail.

It is the latest charge AMD has taken related to its purchase of ATI. In the June quarter, the impairment charge totalled more than $800 million.

In the December quarter, AMD said it would also take a $20 million impairment charge on its investment in flash memory chip maker Spansion Inc.

Shares of Sunnyvale, California-based AMD closed down 8 cents at $2.10.