AMD has recently confirmed plans to reduce its workforce by 4% as part of a strategy to concentrate on major growth areas. While it’s unclear which departments are affected or the exact number of employees involved, this reduction likely impacts around 1,000 people, based on AMD’s workforce of approximately 26,000 last year.
In a statement to CRN, an AMD spokesperson explained, "To align our resources with significant growth opportunities, we are implementing various targeted measures." The company emphasized its commitment to treating those affected with respect and providing support during the transition.
This development follows a mixed Q3 earnings report, previously highlighted by Wccftech, where AMD reported increases in revenue and profit but saw a steep 69% drop in gaming division revenue year-over-year. Additionally, the company's guidance for the current quarter did not meet analysts' expectations.
AMD has encountered challenges in the AI chip market, struggling to compete with Nvidia. Although AMD expects to ship a substantial 224,000 GPUs this year, supply constraints have limited availability for major clients like Microsoft and Meta. AMD's AI chips also reportedly fall short in training performance compared to Nvidia's, though AMD asserts that its products excel in AI inference applications.
CEO Lisa Su, addressing these issues in the Q3 earnings call, reassured investors of AMD's competitive roadmap, noting that its upcoming MI350-series chip—scheduled for the latter half of 2025—will bring significant AI performance advancements.
However, AMD faces stiff competition, with forecasts suggesting it will achieve $32.6 billion in revenue by 2025, a $7 billion increase. In contrast, Nvidia’s quarterly revenue from AI chip sales alone is projected to reach around $33 billion. AMD’s stock is currently down 4% for the year.
Post a Comment