AMD to lay off 1,000 employees amid AI-focused business realignment
Advanced Micro Devices (AMD), one of the world's top chipmakers, has announced plans to cut its workforce by some 4%. The move will see nearly 1,000 employees lose their jobs. The company's annual 10-K filing last year showed a total of about 26,000 employees. The layoffs are part of AMD's plan to streamline operations and focus on the growing AI chip market.
AMD's commitment to impacted employees
An AMD spokesperson said, "As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%." The company has promised to treat the affected employees with respect and help them through this transition period. The job cuts will mainly affect sales and marketing roles in consumer PCs and gaming PCs sectors.
AMD's Q3 earnings report and market challenges
The announcement comes on the heels of AMD's mixed Q3 earnings report. While the company's revenue and profit increased overall, its gaming division saw a whopping 69% year-on-year decline. AMD's guidance for the current quarter also missed analysts' expectations. The chipmaker has also struggled to compete with industry leader NVIDIA in the AI chip market due to inventory issues and performance gaps in critical AI training workloads.
AMD's stock performance and future prospects
In 2024, NVIDIA's stock has surged by nearly 200%, while AMD's shares have fallen by 5%. Despite the difficulties, AMD is optimistic about its upcoming MI350-series silicon. The next-gen product will launch in the second half of 2025 and promises a major AI performance boost. Lisa Su, Managing Director at AMD, was optimistic about the upcoming launch during the company's Q3 earnings call.
