Chipmaker AMD plans to cut 10% of its workforce – around 1,000 jobs – in a bid to "create a more competitive cost structure".

"Reducing our cost structure and focusing our global workforce on key growth opportunities will strengthen AMD’s competitiveness and allow us to aggressively pursue a balanced set of strategic activities designed to accelerate future growth," said CEO Rory Read in a statement.

AMD hopes to save $10 million in the next financial quarter and $118 million next year. The cost of the restructuring (i.e. redundancy payments) will be $101 million in the next quarter, and $4 million next year.

"The company expects to reinvest a significant portion of the savings to fund initiatives designed to accelerate AMD’s strategies for lower power, emerging markets, and the cloud," it said in a statement.

Last week, the company reported a 4% year-on-year revenue increase to $1.6 billion for the third quarter of the financial year, and net income of $97 million. The company said it expects revenue to increase 3 percent "plus or minus 2 percent" in the next three months.

AMD made a similar move in 2008, cutting around 1,600 jobs.

According to the Wikipedia page on AMD founder Jerry Sanders, his motto was: "People first, products and profit will follow".