The moves follow the resignation of chief technical officer Phil Hester in February.
AMD will now have a central engineering department led by Jeff VerHeul, former corporate vice president of design engineering, and Chekib Akrout, who used to work as a designer at Freescale.
"Placing experienced leaders in new, more focused, roles will enhance our execution and progress towards sustained profitability and long-term success," said Dirk Meyer, AMD president and chief operating officer, in a statement.
"The creation of a central engineering organisation aligns and focuses AMD's world-class engineers and intellectual property portfolio on the strong business opportunities in front of us."
AMD is facing a stock meltdown after a number of errors and the perception that the company is slipping behind Intel in innovation.
Hester resigned because of problems with AMD's quad-core server processor, and the new unit will focus on getting faster chips to market more quickly.