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AMD takes an additional $70 million in restructuring charges

AMD and ATI have not enjoyed the success the two firms envisioned when AMD bought the graphics firm in 2006. AMD is hurting due to the global economy and announced this week that it will take an additional restructuring charge related to the $5.4 billion is spent to purchase ATI.

AMD says that it also laid off 100 more employees than it had originally announced bringing the total laid off over the quarter to 600.

As a result of the additional layoffs, AMD is recording $70 million in restructuring charges rather than the $50 million in charges it has expected. The chipmaker also says that the new cost reduction would result in additional charges though the first half of 2009, though the firm did not specify what the additional charges would be.

EWeek reports that AMD will take an additional goodwill impairment charge related to the ATI purchase from 2006. AMD says that the charge is based on an updated, long-term financial outlook. This isn’t the first impairment charge AMD has taken in relation to the ATI purchase, in June of 2006 AMD took a charge totaling $800 million. AMD will also take a $20 million impairment charge on an investment in flash maker Spansion.

AMD announced in early December that it was cutting revenue forecasts by 25%.

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RE: Rumor
By FaceMaster on 12/30/2008 2:04:10 PM , Rating: -1
Rumor has it around here that AMD is doomed and is slowly getting crushed by the almighty behemoth that is Intel. Scrap that- it's already been crushed. It's currently waiting, half squashed into the floor, for death to claim it... while ants feed on the crushed body parts and flies lay eggs on the red goey meat, exposed from holes in the skin akin to that of a sausage bursting as you cook it.

RE: Rumor
By amanojaku on 12/30/2008 2:09:07 PM , Rating: 2
Don't forget to take your meds.

RE: Rumor
By Inkjammer on 12/30/2008 3:01:49 PM , Rating: 4
Intel mostly comes out at night. Mostly.

RE: Rumor
By porkpie on 12/30/2008 4:08:40 PM , Rating: 2
Why don't you put HER in charge?

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