The outfit is facing weak demand for its chips and is falling behind its rivals Intel and Nvidia it its key markets.
AMD said it expects to 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.
Under the plan AMD will outsource some IT and application development services, the company said in a regulatory filing.
AMD will cut white collar jobs and is not shutting or idling any engineering operations. The jobs will be lost across AMD’s global operations, including Austin, Texas, and company headquarters in Sunnyvale, California.
AMD had about 9,700 employees at the end of last year, according to its latest annual filing from February.
AMD reported its second quarter revenue fell 35 percent from the year-earlier period, citing weaker than expected demand for PCs.
The company has been shifting to gaming consoles and low-power servers, but progress has lagged Wall Street expectations due to intense competition from Intel and newer companies. It is currently betting the farm on its Zen chip range, which should be out next year.