Advanced Micro Devices Inc said, on Monday, it would cut 10 per cent of its work force, or about 1,680 jobs.

Citing lower-than-expected sales across its business, AMD estimated revenue for the quarter ended March 29 at about $1.5 billion.

AMD, second-largest maker of computer processors, lost market share last year as its chip-making technology lagged Intel’s. Intel ended 2007 with 79 per cent revenue share of microprocessor market and AMD with 13 per cent, according to market researcher iSuppli.

Intel has also issued its own warning about first quarter. In early March, Intel cut its gross margin forecast, citing weaker pricing for NAND memory chips used in consumer electronics, such as digital music players and cell phones. Intel is scheduled to report results on April 15 and AMD on April 17. AMD lags currently lags Intel in chipmaking technology and could be about nine months behind Intel when it introduces chips with elements as small as 45 nanometers in the second half of 2008. A nanometer is a billionth of a meter.

As a result of job cuts, planned by the end of third quarter, Sunnyvale, California-based AMD expects to record a restructuring charge in the second quarter, the size of which is being finalised. Intel is based in nearby Santa Clara, California. “We have a cost structure that we need to reduce due to lower revenue expectations, which are occurring in uncertain market conditions,” said AMD spokesman Drew Prairie, adding that cuts amount to about 1,680 of AMD’s 16,800 jobs.