Of course, we predicted  this would happen. The company is betting the farm on its coming Zen chip, but this will not appear until next year.  Meanwhile it is facing shrinking sales and nearly impossible competition.

Under the restructuring AMD will outsource some IT and application development services.  It will give 500 people, or five percent of its staff, their pink slips and P45s. The company will take a charge of $42 million, with $41 million of that recorded in the just-ended third quarter. AMD said it expected savings of about $58 million in 2016 from the restructuring plan.

This is about the same time AMD hopes to clean up with its Zen chips.

AMD said it will cut white-collar jobs and is not shutting or idling any fabricating operations. The jobs will be lost across AMD's global operations, including Austin, Texas, and company headquarters in Sunnyvale, California. AMD only has 9,700 employees at the end of last year, so 500 is rather a chunk.

AMD reported its second-quarter revenue fell 35 percent from the year-earlier period, claiming that no one wanted to buy PCs.

The company has been shifting to gaming consoles and low-power servers, but it really has not moved fast enough or come up with the sort of "wow" technology which is needed to see off Intel.