AMD cutting costs in 2009: Job cuts and more

2008 was not a good time for AMD (NYSE:AMD), as a result in December they had filed an 8-K report with the SEC; this detailed the company’s plans to reduce corporate overhead. AMD have already cut its staff by 600, as part of its $70 million restructuring charge. AMD had said that more job cuts were planned in 2009, in an effort to reduce costs further in 2009.

AMD have been looking at these cost cutting measures in detail and said that these cost-cutting measures could cost the company around $50 million in the first quarter of this year. The reason for this is that AMD will have to pay out for severance and employee benefits.

AMD said that they are not done with the cost cutting measures just yet, further reductions will cost the processor maker more at first, but in time, they will then start to see the benefit. Ars Technica has been taking a closer look at these cost saving measures, to try to make sense of it all