AMD to take further action to cut costs

From InfoWorld: Advanced Micro Devices on Friday said it would take further actions, which could include facility closures, to cut costs as it restructures in an effort to return to profitability.

The further cost reduction efforts are expected to result mainly from consolidations of facilities as the company tries to merge operations, said Drew Prairie, an AMD spokesman.

AMD originally reported the additional cost-cutting measures in a filing on Thursday with the U.S. Securities and Exchange Commission.

The cost reduction efforts will result in additional charges during the remainder of fiscal 2009 and beyond, though AMD couldn't estimate the exact amount. The efforts will not have a significant material impact on AMD's operations, the company said in the filing.

Prairie declined to comment on whether the cost cutting would include further headcount reduction, which have been a part of AMD's past restructuring efforts. In January, the company said it would shed 1,100 jobs and cut salaries.

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