AMD: Sales weak; Layoffs on tap

AMD on Monday said its first quarter sales will be about $1.5 billion, well below Wall Street projections of $1.62 billion. It will also lay off 10 percent of its workforce.

In a statement, AMD said revenue will be down about 15 percent from the fourth quarter due to "lower than expected sales across all business segments."

AMD also said it will also restructure by the end of the third qurter. AMD said it will record a restructuring charge, but couldn't give an estimate since the job cuts were being finalized.

AMD will report first quarter earnings April 17. Analysts were expecting a loss of 40 cents a share, according to Thomson Financial.

The news isn't that surprising amid a slowing economy, a barrage from Intel and the fact that AMD really just started shipping Barcelona chips for multiple markets.