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Advanced Micro Devices To Layoff Another 100

Chip maker added 100 employees to its cost reduction plan, raising to 600 the number of workers it notified of termination in the fourth quarter, the company said Monday.

SUNNYVALE, Calif. (AP) -- Chip maker Advanced Micro Devices Inc. added 100 employees to its cost reduction plan, raising to 600 the number of workers it notified of termination in the fourth quarter, the company said Monday.

AMD said its restructuring expense for the quarter would rise to $70 million, up from $50 million it estimated last month, according to a document filed Monday with the Securities and Exchange Commission.

Further cost reductions in the first half of 2009 would result in additional charges, it said, although it was unable to provide an estimate.

The company also said it would incur an undetermined material write-down in the quarter for its October 2006 acquisition of graphics-chip maker ATI Technologies Inc., and a $20 million impairment charge for its investment in Spansion Inc., one of the world's largest makers of flash memory chips.

AMD chips account for about 20 percent of the worldwide microprocessor market behind dominant market leader Intel, with about 80 percent.

Last month, AMD said the 600 workers it was laying off made up about 3 percent of its global work force.

Shares in AMD fell 8 cents, or 3.7 percent, to close at $2.10 in Monday's regular session, but they gained 2 cents to $2.12 in after-hours trading.