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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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Trust Fund ?
By suzuki2 on 12/31/2008 6:56:19 AM , Rating: 2
Someone should get a trust fund for donations to help AMD. If they go under Intel and Nvidia are going to wack their prices way up because of no competition! It doesn't matter if you like AMD or not if we could help in any way this would benefit all who are in the pc market. Intel tried doing this with the Rambus memory and the ridiculous prices they wanted to charge and if given the chance again they will do it. If everyone could put up 5, 10, 20, would make a big difference and that is not much to put out one time to help a company that would benefit us all in the long run!!!!




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