AMD has confirmed that it’s laying off 4% of its workforce to focus on “large growth opportunities.”
Impact on Employees
It’s uncertain how many workers have been affected by the reduction – and in which divisions. AMD had about 26,000 employees as of last year, according to the company’s annual 10-K filing. Four percent would amount to approximately 1,000.
Challenges and Strategy
The news follows a mixed Q3 earnings report. While AMD experienced growth in revenue and profit, the company’s gaming division saw a 69% year-over-year decline, and guidance for the current quarter fell short of analysts’ expectations.
AMD has been facing challenges in AI chip sales compared to rival Nvidia, partly due to a lack of inventory. The company is making efforts to position its offerings as the top choice for AI inference despite falling short in AI training workloads.
During the Q3 earnings call, AMD CEO Lisa Su assured investors that the company’s future chips will be competitive with Nvidia’s, with a significant increase in AI performance expected in the second half of 2025.
Financial Outlook
AMD’s stock has declined by approximately 4% for the year, with the company’s 2025 revenues estimated to reach $32.6 billion, a modest increase compared to Nvidia’s forecasted quarterly revenues of $33 billion, primarily driven by AI chip sales.
