1 week Ago By Priya Singh
AMD has announced that it will reduce its global workforce by 4%, aiming to strengthen its position in the rapidly growing artificial intelligence chip market, where Nvidia currently holds a dominant position. "To align our resources with our most significant growth opportunities, we are implementing several targeted actions, which unfortunately include reducing our global workforce by approximately 4%," an AMD spokesperson told CRN. "We are committed to supporting affected employees with respect and providing assistance during this transition.
" With @AMD 's layoffs...
Some said it was a total shock and even one stated: "Definitely wasn't expected it. Got what I would consider to be a generous severance, which softens the blow." 2024.
..— Amanda Goodall (@thejobchick) November 13, 2024 According to a US Securities and Exchange Commission filing, AMD had 26,000 employees as of the end of last year.
ALSO SEE: "Jail Is Better": Employee Talks About Toxic Workplace With "No Talking, No Phone" Rule AMD, the second-largest GPU producer behind Nvidia, has identified AI as a major growth driver. However, while Nvidia's stock has soared 200% in 2024, making it the world's most valuable company, AMD's shares have declined by 5%. $AMD has confirmed to Wccftech that it’s laying off around 4% of its global workforce (about 1,000 employees) to align resources with key growth areas, including AI.
Source: Wccftech— Wall St Engine (@wallstengine) November 13, 2024 Nvidia's dominance in the AI chip market, with over 80% market share, is largely due to its development of essential AI software used by engineers to build AI models like OpenAI's ChatGPT.Although AMD offers powerful AI accelerators like the MI300X, which are popular with companies like Meta and Microsoft, Nvidia's early dominance and robust ecosystem present significant challenges for AMD to surpass. In October, AMD projected $5 billion in AI chip sales for 2024, about 20% of its total projected revenue of $25.
7 billion. While AMD sees the AI chip market growing to $500 billion by 2028, its sales are currently much smaller compared to Nvidia, which is expected to generate $125.9 billion in 2024.
Additionally, CNBC reports that AMD's gaming segment is struggling, with a 59% revenue decline expected in 2024. AMD competes with Intel in processor chips for laptops, desktops, and servers, with its server CPU market share rising to 34% in the third quarter. During AMD's Q3 earnings call, CEO Lisa Su sought to reassure investors about the company’s competitive stance against Nvidia.
She stated, "Our next-gen MI350-series silicon is performing very well and remains on track for a second-half 2025 launch, promising the largest generational leap in AI performance we've ever delivered.".
