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Struggling AMD to close more facilities

Further cost-cutting measures planned

AMD is to 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 US 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.

The actions are part of AMD's effort to reduce costs to reach break even by the end of the year. Battered by consecutive quarterly losses, AMD has seen demand for chips fall during the recession. It has joined other chip companies, including Intel and Texas Instruments, that are struggling due to constrained budgets and a slowdown in PC demand.


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