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AMD announced today that it will be reducing its global workforce by 4%, equating to less than 1,000 employees out of its 26,000-person team.
Despite surpassing Intel in the x86 processor market, AMD is facing tough competition from Nvidia in the AI accelerator space.
AMD’s spokesperson stated, “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%. We are committed to treating impacted employees with respect and helping them through this transition.”
With AMD’s stock declining this year while Nvidia’s has soared, the competition in the AI chip market is intensifying. AMD’s market value stands at $227 billion compared to Nvidia’s $3.6 trillion.
Despite challenges in the game console market, AMD anticipates $5 billion in AI chip sales this year. The company’s share of processors against Intel has risen to 34%, showing significant growth.
Analysts express surprise at the layoffs, with some suggesting that AMD could have waited before making such decisions. Jon Peddie Research’s Jon Peddie commented, “AMD had a good quarter — but not quite as good as some of the Wall Street sharp shooters, who, after all, is who we all work for and worry about — thought they should have had. AMD didn’t seem over burdened headcount wise, and this is a really crappy time to have to lay someone off.”
