AMD has confirmed it’s laying off 1,000 employees, approximately 4% of its workforce, as part of a plan to focus on “large growth opportunities.” The move comes after a mixed Q3 earnings report, which saw the company’s gaming division decline by 69% year-over-year.
The layoffs were previously reported and come amid AMD’s struggles to compete with Nvidia in AI chip sales. A lack of inventory is a significant issue, with AMD estimated to ship only 224,000 GPUs this year, a high volume but not enough to meet demand from large customers like Microsoft and Meta.
AMD CEO Lisa Su assured investors that the company’s next-gen chips will be highly competitive with Nvidia’s, with the launch of new silicon expected in the second half of 2025. However, consensus estimates suggest AMD’s 2025 revenues may only reach $32.6 billion, compared to Nvidia’s forecasted $33 billion.
The news has led to a decline in AMD’s stock price by around 4% for the year. The company remains committed to supporting impacted employees through this transition.
Source: https://techcrunch.com/2024/11/13/amd-lays-off-4-of-its-workforce