In its filing with the SEC, AMD said it is taking US$50 million in charges related to cost-cutting efforts during the fiscal first quarter of 2009. It includes $23 million in charges related to layoffs during the first fiscal quarter of 2009. The remaining $27 million in charges relate to contract and program termination, and exit costs for facility site consolidations and closures.

In an earlier on Dec. 28 with the SEC, AMD said it would take charges in the first half of fiscal 2009 resulting from cost-cutting actions, though it could not estimate the amount at the time.

AMD is set to announce its first quarter results for fiscal 2009 on April 21. The company is trying its best to bring operating expenses in line with the revenue, but it could have a tough time, said Dunham Winoto, senior analyst for semiconductors at financial analyst firm Avian Securities.

The spin-off of manufacturing assets and debt of about $1.1 billion to GlobalFoundries will help reduce costs, but the ATI acquisition will continue to be a burden as competition in the graphics market with Nvidia and Intel heats up, he said.

AMD last month spun off its manufacturing operations into GlobalFoundries, a separate company, formed as a joint venture with Abu Dhabi investment firm Advanced Technology Investment Company. AMD holds a 34.2 percent stake in the new company.