By James O'Toole@jtotooleOctober 18, 2012: 5:11 PM ET
NEW YORK (CNNMoney)
Chipmaker AMD announced Thursday that it was cutting 15% of its workforce, with declining PC sales sending its revenues sinking.
The company said the cuts, expected to be completed by the end of the year, should save roughly $20 million in the fourth quarter and $190 million next year. The announcement came as part of AMD's third-quarter earnings release, which showed sales fell 25% versus a year ago.
"The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD," company CEO Rory Read said in a statement, adding that this shift is happening "at a much faster pace than we anticipated."
"Reducing our workforce is a difficult, but necessary, step to take advantage of the eventual market recovery and capitalize on growth opportunities for our products outside of the traditional PC market," Read said.
AMD(AMD) employed 11,705 people as of February. The company's shares tumbled 14% last week after it issued a warning about its third-quarter revenue. Shares were down 0.4% in after-hours trading Thursday.