AMD is axing another 1,100 jobs - around 9% of its 12,000 workforce - to further reduce its costs in a worsening market.
In addition, senior management at AMD are to take wage cuts of between 15% and 20%, and staff in the US will have their wages slashed by between 5% and 10%. Staff elsewhere will also be put on reduced salaries.
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The latest AMD job cuts follow the 2,000 positions that went last year at the loss-making company.
Last year, AMD's chip foundry operations were spun off into a separate company. The move included 3,000 staff, and none of these are affected by the latest cuts.
The latest AMD cost cuts come after bigger chip rival Intel announced a 90% slump in profits for the fourth quarter.