AMD may reduce its workforce again in January.

Sources at the chip maker say that it has plans to lay off another ten percent of its global workforce, which is about 1,500 employees.  Most of the layoffs will be in AMD's manufacturing business, while some administrative positions may also be cut.

AMD has refused to confirm this. In April, AMD said it would be laying off about 10 percent of its 16,500 employees. Then in November, the company announced another three percent cut, representing a cut of more than 500.

AMD expects its fourth quarter sales to be approximately 25 per cent lower than its third quarter revenues of US$1.585 billion.