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Chip maker’s shares tumble, plans to eliminate 300 jobs

SHARE Chip maker’s shares tumble, plans to eliminate 300 jobs

SUNNYVALE, Calif. (AP) -- Shares of computer chip maker AMD tumbled more than 10 percent Tuesday after the company forecast a "significant" loss for the current quarter and a restructuring program that will cut about 300 jobs over the next six months.

In an announcement after financial markets closed Monday, AMD also said it would fall short of its goal of shipping 5.5 million K6 processors during the quarter ending March 28.In trading this morning on the New York Stock Exchange, AMD was off $1.93 3/4 at $17 a share.

The restructuring is aimed at increasing the company's focus on microprocessors and other circuits that enhance the value of personal computers as tools for communications and information processing, AMD said.

AMD employs 13,800 people worldwide, with 6,900 in the United States. It posted a loss of $55.8 million on sales of $540.9 million in the first quarter of 1998.

AMD supplies integrated circuits for the computer and communications markets. It produces processors, flash memories, programmable logic devices and products for communications and networking applications.