Industry analysts are unsure if AMD will have to cut more jobs in the near future. "I'm surprised the number is as small as what it is," said Brian Piccioni, a BMO Capital Markets analyst.
American Technology Research analyst Doug Freedman believes the job cuts could "save the company about $40 million per annum in operating expenses and add 8 cents to the bottom-line."
AMD had gained market share to its rival Intel in the past couple of years; however, Intel regained its leading position delivering more competitive products like the Core 2 Duo chip. Currently AMD and Intel face a brutal price war which reduces the profit margins, not to mention last year’s merger with graphics chipmaker ATI Technologies, which AMD acquired last year for $5.4 billion.
AMD is hoping to regain footing in the CPU market with the release of a quad-core processor codenamed Barcelona later this year.