AMD is reportedly preparing to cut 2,200 to 3,300 employees, or 20 to 30 percent of its total workforce of 11,000. The rumor machine started up last week when the company revealed that its quarterly earnings report wouldn't be pretty. Third-quarter sales dropped 10 percent during the period, AMD said, more than its previous guidance range of between up 2 percent and down 4 percent. Nor surprisingly, the mood inside the company is "grim," one source told AllThingsD. CEO Rory Read, who joined AMD in August 2011 from Lenovo and IBM, laid off 1,400 workers last November. AMD's not the only chipmaker under pressure. Last week, Gartner and IDC said third-quarter PC shipments declined more than 8 percent year over year, meaning rival Intel's hurting, too.