AMD Plans to Lay Off  1,000 Employees as it Shifts Focus on AI Chip Development

AMD Ryzen 7 3700X
AMD Ryzen 7 3700X. Photo by Olivier Collet on Unsplash

Semiconductor company Advanced Micro Devices (AMD) plans to lay off 4% of its global workforce, or about 1,000 employees, as part of its efforts to shift focus to the development of artificial intelligence (AI) chips.

AMD views AI as its biggest opportunity for growth, but it has yet to gain ground compared to rival chipmaker Nvidia. It is estimated that Nvidia currently controls around 80% of the AI chips market.

″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 representative said in a statement. “We are committed to treating impacted employees with respect and helping them through this transition.”

AMD recently shared its earnings for the third quarter of fiscal 2024, which provided an insight into the company’s changing focus. It reported $3.5 billion in revenue for its data center segment, which includes the AI chips division, which marked a 122% year-over-year increase. Meanwhile, its gaming division slumped by 69% compared to the same period last year.

Investors don’t seem too convinced about AMD’s ability to improve its position in the AI chip market. The company’s stock closed at $139.30 per share on Wednesday after a 3% drop and is currently just 0.52% up year-to-date. Meanwhile, Nvidia’s shares have soared by 203.65% since January.

Jas M
Jasmin can write about almost everything except about himself. All you need to know is that he likes music, Nutella stuffed pancakes and sleeping till noon on Sundays.