Advanced Micro Devices said it would lay off 500 people, or 5 percent of its 9,469 work force, as part of a previously announced restructuring.
In July, AMD said it would have to restructure its business units because its sales of chips for PCs and other devices was weaker than expected. It is also facing fierce competition from Intel, the world’s largest chip maker.
AMD recently announced it would also separate its graphics chip business into a separate division, Radeon Technologies Group, under Raja Koduri.
Sunnyvale, Calif.-based AMD is creating its Enterprise Solutions Teams within the Enterprise’s Embedded and Semi-Custom (EESC) segment to align the business, engineering, and sales efforts.
AMD said all parts of the company were affected, but it would try to minimize the impact on engineering.
The company said that it would incur $41 million in restructuring and impairment charges in the third quarter, which would result in savings of approximately $9 million in 2015 and $58 million in 2016.