The company will lay off close to 1,800 people, and it currently has about 11,813 employees. The layoffs would be completed in the fourth quarter of this year.

The company will also shut down offices as part of the larger restructuring effort. AMD hopes to save US$20 million in the fourth quarter and approximately $190 million in fiscal 2013 as a result of the restructuring effort.

"The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD," said CEO Rory Read in a statement.

The computing industry is being reshaped "at a much faster pace than we anticipated," Read said. The restructuring will make the company nimble and simplify product development cycles, Read said in a statement.

The PC market is in a decline due to a challenging global economy and the move to alternative computing devices such as smartphones and tablets. Research firm IDC earlier this month said that worldwide PC shipments in the third quarter dropped by 8.6 percent compared with the same quarter a year earlier.