Bangalore: Advanced Micro Devices has planned to lay off 10 percent of its global work force and it will terminate 'existing contractual commitments' in a plan to cut costs. This move came after manufacturing issues impacted AMD's third-quarter revenue, said Nancy Gohring to Computer World. AMD President and CEO Rory Read said that AMD can boost its competitiveness by reducing costs and 'focusing' its workforce on key opportunities. The main intention of restructuring the plan is to save $200 million in operating expenses by 2012. The company has planned to use most of that money to fund AMD's strategies for lower power, emerging markets and the cloud. The layoffs are expected to happen by the first quarter next year and will hit workers globally across all functions. This restructuring will cost AMD some money too and by the fourth quarter it expects restructuring expenses of $ 101 million with an additional $4 million in expenses occurring by next year. AMD had faced some problem with its manufacturing partner, GlobalFoundries, which was spun out of AMD in the year 2009. It had problems in manufacturing a new chip for AMD. This problem had a big impact on the company's third-quarter revenue as that problem led to a short supply of AMD's Fusion chips.