Advanced Micro Devices, the second largest microprocessor maker behind Intel, on Monday issued a sales warning and announced plans to cut its workforce by 10 per cent.

AMD said it expected revenues for the quarter just ended to be about $1.5bn, down 15 per cent on the fourth quarter. It had predicted a seasonal fall of 5 to 10 per cent during its fourth-quarter earnings call, but it said there had been lower than expected sales across all of its businesses.