Even if it planned to cut just 500 jobs, the company will now record $70 million in restructuring charges, versus the $50 million it previously predicted.

Furthermore, the new cost reductions would result in more charges in the first half of the next year, even though AMD would not provide an estimate.

 

In addition, the company also said it would take a goodwill impairment charge related to its 2006 acquisition of the graphics chip maker ATI. This decision seems to be based on a long-term financial outlook.

 

However, AMD declined to estimate the size of the charge, which would be material and non-cash, according to the filing with the US Securities and Exchange Commission. This is the latest charge AMD has taken related to its purchase of ATI. For example, in the June quarter, the impairment charge totaled more than $800 million.

 

Earlier this year, AMD split in two in order to defray the burdensome costs of its manufacturing operations, which received a massive investment from Mubadala Development and is now run as a separate concern called The Foundry Company. The stock price of AMD has sunk from about $6 in June of this year to a little more than $2.

 

As part of the long-awaited and expected plan, which impacts 3,000 jobs, AMD will spin off its manufacturing operations into that Foundry Company, which will compete against TSMC, UMC, and one of its partners in Chartered. All in all, it can be said that AMD will become a fabless design house.