AMD announced it is cutting 3 percent of its work force, affecting about 500 employees.
InformationWeek reports the company did not reveal where the cuts would be made but released the following statement:
"Today's announced headcount reduction is an unfortunate but necessary part of this process to help us align our people with the focused programs that achieve our objectives, eliminate duplication of efforts and allow us to operate more efficiently."
According to The New York Times, AMD's cuts are the result of the company's efforts to reduce costs and reach a $1.5 billion break-even in quarterly revenue. AMD has struggled to compete with its chief rival Intel the last couple of years and recently announced plans to split into two separate businesses to make itself more competitive.