After several rumors, AMD has confirmed a 4% reduction in its workforce across various global divisions. This represents around 1,000 employees out of the company’s more than 26,000-strong workforce. A representative from AMD explained that the layoffs are part of an “alignment of resources” and assured that the company would support affected employees during the transition, including assistance with relocation efforts.
The news first emerged on social media on Tuesday (November 12), with many employees expressing surprise at the layoffs. As more former AMD workers shared their experiences, it became clear that the company had conducted a mass reduction in staff, which was later officially confirmed.
These layoffs come amid an industry-wide trend, with other major tech companies, including Intel, making significant cuts. Intel, for example, laid off 15,000 employees to improve profitability and address losses in recent quarters. This shift in the industry reflects ongoing challenges and efforts to streamline operations as companies adapt to changing market conditions.
AMD sees fall on the Stock Exchange
After releasing its third-quarter financial report for 2024, which showed a significant drop in profits, AMD has seen a sharp decline in its stock price. Over the span of about 15 days, the company’s shares dropped by 13.6%.
The gaming division, in particular, was hit hard, experiencing a 69% decline in Q3 2024, bringing in only $462 million. This led to a dramatic reduction in operating profit, which fell by 96%, down to just $12 million, compared to $208 million in the same period last year. This sharp drop raised concerns about AMD’s profitability in the near term.
Despite these challenges, AMD remains optimistic about its future. The Ryzen 9000X3D processors have been well received, and there was even a shortage of stock due to high demand. Additionally, AMD reported a 15% increase in the CPU market share, while its main competitor, Intel, saw a modest 3% decline.
The company is also expanding its presence in the AI sector, with several strategic acquisitions, including Silo AI and ZT Systems. AMD aims to follow in NVIDIA’s footsteps by building a comprehensive ecosystem around AI technologies, integrating hardware and software solutions to meet the growing demand in this space.
