AMD Layoffs: Semiconductor Firm Plans To Fire 1,000 Employees; Here's Why

AMD Layoffs: Despite a strong 29 per cent growth in its personal computer segment, AMD’s gaming division has experienced a sharp 69 per cent year-over-year decline

AMD Layoffs: Advanced Micro Devices (AMD) has announced a 4 per cent reduction in its global workforce, affecting approximately 1,000 employees. According to a report by CNBC, the move is part of the company's efforts to streamline operations amid a challenging economic environment.

″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 per cent,” an AMD spokesperson said in a statement. 

“We are committed to treating impacted employees with respect and helping them through this transition,” the spokesperson added. 

AMD has faced significant challenges in its efforts to compete with industry leader Nvidia in the rapidly growing AI chip market. The company has struggled with inventory issues and has not been able to match Nvidia’s performance in critical AI training workloads. As a result, Nvidia’s stock has surged nearly 200 per cent in 2024, while AMD’s shares have declined by 5 per cent.

Despite a strong 29 per cent growth in its personal computer segment, AMD’s gaming division has experienced a sharp 69 per cent year-over-year decline.

However, the company remains optimistic about its future prospects, particularly with the upcoming launch of its next-generation MI350-series silicon. Set to debut in the second half of 2025; these chips are expected to deliver a significant boost in AI performance. Lisa Su, CEO of AMD, expressed confidence during the company’s Q3 earnings call, stating, "Our next-gen MI350-series silicon is looking very good and is on track to launch in the second half of 2025, with the largest generational increase in AI performance we have ever delivered."

Meanwhile, the tech industry has been grappling with challenging times for quite some time. Almost all of the big tech companies have announced a significant number of layoffs in recent times. Firms like Meta, Google, Amazon and many more have fired several employees.