AMD restructuring costs to hit $50 million in 2009

By on April 6, 2009, 6:34 PM
Back in December when AMD reported a write-down against ATI's goodwill, the company said it expected to take further restructuring charges in the first half of 2009 but could not offer an estimate at that time. Well, the struggling chip maker has now put a number on those costs: $50 million. The cash outflow breaks down into a variety of categories, with approximately $23 million slated for employee severance payments and related benefits.

Meanwhile, $13 million will be spent on contract or program termination costs, $7 million on “asset impairments” and another $7 million to cover the cost of closing or consolidating facilities. AMD says it expects to complete its restructuring plan in the fourth quarter of 2009, though the company declined to comment on whether the cost cutting would include further headcount or salary reductions.

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