Struggling to return to profitability, US chip maker Advanced Micro Devices Inc (AMD) has cut an additional 100 jobs in the latest quarter, thereby laying off 600 workers. While the company had previously predicted the job cuts to record $50 million in restructuring charges, it now expects expenses of $70 million, including $34 million from severance costs and the continuation of some employee benefits.

Moreover, the new cost reductions imply more charges in the first half of the coming year. The company is already planning to take another charge related to its $5.4 billion acquisition of graphics chip maker ATI Technologies Inc in 2006.

Though the company refused to give details about the estimated size of the goodwill impairment charge, the filing with the US Securities and Exchange Commission (SEC) suggests that it would constitute material and non-cash.

According to SEC regulators, AMD said its decision was largely based on "the results of an updated, long-term financial outlook" for the business. This is the latest charge AMD has taken, as regards its purchase of ATI. In the quarter that ended in June, the impairment charge was in excess of $800 million.

With the falling demand for PC chips, AMD is trying its best to keep pace with its larger rival, Intel Corp., which appears to controlling the market by rapidly adopting newer technologies.

AMD is also nearing the completion of a transaction with the UAE government that will provide funds for investment in new technology and give the company's manufacturing operations a boost.