AMD Cuts 4% of Its Global Workforce

The company claims this is essential to ensure access to the most significant growth opportunities.

AMD Announces Significant Layoffs

AMD, a global leader in chip manufacturing, has declared a workforce reduction of about 4%. TechCrunch reports that the exact number and specific divisions affected remain unclear.

Over a Thousand Jobs at Stake

With AMD’s headcount at approximately 26,000 last year, a 4% cut suggests that over 1,000 employees might be facing job losses.

Cited Reasons for the Layoffs

An AMD spokesperson told CRN, “As part of aligning our resources with our biggest growth opportunities, we are making a number of targeted adjustments.” The company also committed to treating affected employees with respect and assisting them during the transition.

Mixed Results and Increased Competition

The layoffs follow a mixed third-quarter earnings report. While overall revenue and profits rose, AMD’s gaming division saw a dramatic 69% revenue drop from the previous year, according to Wccftech. Additionally, AMD is struggling to keep pace with NVIDIA in the artificial intelligence chip market.

Despite these challenges, experts still anticipate AMD will generate close to $33 billion in revenue by 2025, driven by new generations of graphic processors. However, this forecast hasn’t calmed investors’ nerves, as AMD’s stock has fallen approximately 4% this year and dipped further today.

Note that AMD’s rival and occasional partner, Intel, has also faced similar challenges, having announced over 15,000 layoffs earlier this year.