Advanced Micro Devices (AMD) has announced a reduction of its global workforce by 4%. According to a report by CNBC, the chipmaker is laying off about 1,000 employees.
″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%,” an AMD spokesperson said in a statement. “We are committed to treating impacted employees with respect and helping them through this transition,” the spokesperson added.
AMD's efforts to compete with industry leader Nvidia in the AI chip market have been challenging. The company has faced issues with inventory and has struggled to match Nvidia's performance in key AI training workloads. In 2024, Nvidia’s stock is up by almost 200% whereas AMD’s shares are down 5%.
Despite a 29% growth in AMD's personal computer segment, the company's gaming division saw a significant 69% year-over-year decline.
However, AMD remains optimistic about its next-generation MI350-series silicon, which is expected to launch in the second half of 2025 and deliver a significant increase in AI performance. Lisa Su, managing director, AMD, said during the company’s Q3 earnings call that the company is looking forward to the launch of its next-gen processors. “Our next-gen MI350-series silicon is looking very good, and is on track to launch in the second half of 2025, with the largest generational increase in AI performance we have ever delivered,” she said.
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