SiliconBeat

Advanced Micro Devices says it will lay off about 10 percent of its workforce between now and the end of September. That would be effect more than 1,600 employees based on the the company’s employment at the end of 2007.

The step was announced in a press release the company put out after the markets closed today in which it lowered guidance on sales for its fiscal 2008 first quarter. It said it expected sales to be approximately $1.5 billion, below the average analysts forecast of $1.62 billion, according to Thomson.

AMD said that the decrease was caused by lower than expected sales across all business
segments. The company will take an as yet to be determined restructuring charge in its second quarter.

No word on the severance yet, but its safe to say they will probably be less than the $8.9 million payment CEO Hector Ruiz would get for termination without cause, or the $5.4 million that COO Derrick Meyer would get or the $4.2 million CFO Robert Rivet would collect (in addition to his $11 million retirement benefit), according to AMD’s proxy filed last month with the SEC.