AMD, the second largest American chipmaker which has been facing problems largely because of a resurgent Intel, will begin reducing its workforce this month and the process is expected to be completed by the end of September, it said.
However, details regarding the locations of job cuts by the company, which has offices at Mumbai, Bangalore and New Delhi, were not given.
The reduction will be "global and will span all groups and all levels within the company and be based on business needs," AMD spokesman Drew Prairie said.
He said the layoffs were part of a cost-restructuring to help return the company to profitability. The company announced the cutbacks in a press statement after the markets closed.
It said it expects to report revenue of $1.5 billion, down 15 per cent from the last quarter. AMD said that the revenue drop was caused by lower-than-expected sales across all business segments. The decline was more than expected.