AMD to cut 1,600 jobs, roughly 10% of workforce

The worst is not over by a long shot for AMD. This afternoon, the company confirmed it would have to make very painful cuts, the repercussions of which are already being felt in terms of declining revenues.

Up until today, AMD had been saying it expected its revenue from the first calendar quarter of this year to decline "in line with seasonality" -- meaning, it would be lower than over the Christmas holiday because January always drops from December. And analysts had been responding to that claim, for the most part, with disbelief. As it turned out, the analysts were right.