AMD cuts its global workforce by 4 percent.
AMD will reduce its global workforce by 4%, a decision made following several layoffs at competitor Intel.
AMD has confirmed that it will reduce approximately four percent of its global workforce, according to various reports. While it has not specified how many people will be affected or from which divisions the employees will be laid off, an approximate calculation can be made. The company had about 26,000 workers last year, according to an annual report from AMD. Therefore, four percent of 26,000 translates to over 1,000 employees, which is a considerable figure.
The reasons behind this decision are wrapped in unclear corporate language. A spokesperson for AMD mentioned that this action is part of a reallocation of resources toward more significant growth opportunities. Despite this, the company assured that it is "committed to treating affected employees with respect and supporting them during this transition." Engadget attempted to obtain more details on how that respect and support will manifest, and further information will be updated if a response is received.
This announcement comes in the context of a third-quarter earnings report that was quite mixed. While the company saw an increase in revenue and profits, its gaming division experienced a 69 percent decline compared to the previous year. Additionally, AMD has struggled to compete with NVIDIA in the artificial intelligence chip sector.
However, AMD is expected to reach nearly $33 billion in 2025, thanks to the launch of the next generations of GPUs. Nonetheless, this projection does not fully satisfy investors, as it represents an increase of only $7 billion compared to 2024. The company's stock has fallen about four percent this year, and it has seen an additional decline recently. In a similar landscape, its rival Intel has also faced challenges, including the announcement of over 15,000 layoffs earlier this year.