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."
Shipments of personal computers are on pace to fall this year for the first time since the dot-com bust of 2001, according to research firm IHS iSuppli.
"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 ( 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.