1 week Ago By [email protected] (George Fitzmaurice)
has announced a 4% cut to its global workforce as part of a realignment of business priorities. , AMD issued a statement saying it would be taking a number of steps ultimately resulting in a workforce reduction. “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 statement said.
AMD did not state what those were, though it said it was committed to ensuring impacted employees are treated with respect and are assisted through the transition. A previous stated that, as of December 2023, AMD employed a total of 26,000 staff members internationally. This means the layoffs could be equivalent to over 1,000 staff members.
The announcement comes after a promising charge in the AI space for AMD, with the firm’s event showing off strong footing in terms of the . At the firm’s Q2 2024 earnings call, AMD reported a 405% increase year-on-year in operating income in its data center unit. One analyst from IDC told that the firm is in a strong position to push hard on AI in 2025.
The firm’s Q3 earnings resulted in a 7% dip in shares , though, with net income falling slightly below some estimates. AMD isn’t the only chip giant making cuts The move from AMD follows a raft of workforce cuts at industry rival, Intel, which , equivalent to around 15,000 roles across its global workforce. Speaking at the time, said the move was part of a cost structure realignment designed to change the firm’s operations, as it hadn’t been seeing enough revenue growth from technologies like .
Both AMD and Intel have been playing catch-up with industry rival Nvidia over the last two years. The chipmaker’s , with big tech firms ramping up AI adoption and flocking to the firm. Intel’s revenue had been falling before the August layoffs, and the firm needs to focus on developing a clear product offering for AI in order to capitalize on the trend.
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