Chipmaker Advanced Micro Devices was down 7.2% in late afternoon after announcing that it will cut 2,300 jobs, or about 15% of its workforce, and shut two chip plants.

AMD said about 1,000 job cuts will be made by closing plants in Austin, Tex. The remainder of the cuts will come from Malaysia.

Because of the moves, AMD said it will take a third-quarter charge of $80 million to $110 million. The company said it expects to save $125 million annually.

AMD, with the entire semiconductor industry, has been battling slumping demand and slow personal computer sales. Rival Intel (INTC) - Get Report was up 0.5%.