Advanced Micro Devices Inc. plans to lay off 250 employees in a move officials said would reduce costs and "align skill sets with anticipated future needs."
The Sunnyvale, Calif., chip manufacturer, which employs 12,400 people worldwide, expects to take a charge of up to $8 million in the fourth quarter for severance issues.
The company, which has lost money the past two quarters, does not expect to make it back into the black this quarter either, said spokesman Scott Allen.
"We want to return to profitability as early in 1997 as we can," Allen said. "Currently, AMD is staffed to be a $3 billion-a-year company, and we're going to do roughly two-thirds of that in 1996. We can't be profitable consistently at current head-count and sales levels."
In September, AMD laid off 200 people. The new job cuts will affect workers at the company's headquarters and at a manufacturing facility in Austin, Texas.