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Amd Axes 4% of Staff as It Shifts Focus to Key Growth Areas: In a move aimed at refocusing its resources towards high-growth areas such as AI and datacenter strategies, AMD has confirmed plans to cut approximately four percent of its global workforce. The decision comes after the company's third-quarter financial results showed solid performance, but also highlighted a tough quarter for its gaming division. With around 1,000 jobs at risk, AMD is taking targeted steps to reduce its workforce while maintaining its commitment to treating impacted employees with respect and care.
AMD plans to cut approximately 4% of its global workforce, resulting in around 1,000 job losses. The decision comes after a solid third-quarter financial performance with $771 million in net income and a 158% year-over-year increase in revenue. AMD's gaming division saw a 69% year-over-year decline in revenue due to reduced demand for system-on-chips used in gaming consoles. The company aims to refocus its resources on higher-margin products, including AI and datacenter strategies. AMD will treat impacted employees with respect and help them through the transition.
AMD has confirmed plans to cut approximately four percent of its global workforce, resulting in the elimination of around 1,000 jobs from a total headcount of roughly 26,000. This move comes on the heels of the company's third-quarter financial results, which showed a solid performance with $771 million in net income on $6.8 billion in revenues - a year-over-year increase of 158 percent and 18 percent, respectively.
The decision to reduce its workforce was not taken lightly, as AMD cited a tough quarter for its gaming division, which saw revenue drop 69 percent year-over-year due to declining "semi-custom revenue." The company attributed this decline to the fact that nearly everyone who wants an AMD-powered console is already in possession of one, resulting in reduced demand for system-on-chips used in gaming consoles.
In contrast, Intel's recent round of layoffs has had a more drastic impact, with around 15,000 jobs cuts across multiple business divisions. AMD's approach to reducing its workforce appears more targeted and strategic, as the company aims to refocus its resources towards higher-margin products, including AI and datacenter strategies.
AMD's spokesperson explained that the move is part of an effort to align its resources with its largest growth opportunities, stating: "As 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."
The company did not specify which teams would be affected by the layoffs, only stating that the actions would be taken across various functions within the organization. This level of discretion may have been intended to avoid exacerbating the already sensitive issue of job losses.
It is worth noting that AMD's decision to reduce its workforce comes as the technology landscape continues to shift towards greater emphasis on artificial intelligence (AI) and machine learning (ML). The company has been investing heavily in these areas, with a particular focus on developing more efficient and cost-effective solutions for businesses and organizations.
In recent months, AMD has made several significant announcements regarding its AI and ML initiatives, including the development of new GPUs and CPUs designed specifically for these applications. The company's efforts to establish itself as a major player in the AI market have been met with varying degrees of success, with some analysts praising its progress while others have expressed skepticism about its ability to sustain momentum.
Regardless of the specific challenges that AMD faces in the competitive AI market, one thing is clear: the company is committed to investing heavily in this area and will likely continue to adapt and evolve its strategies in response to changing market conditions. As the technology landscape continues to shift towards greater emphasis on AI and ML, it will be interesting to see how AMD's workforce reduction affects its ability to capitalize on these emerging trends.
Related Information:
https://go.theregister.com/feed/www.theregister.com/2024/11/13/amd_confirms_layoffs/
Published: Fri Nov 15 12:45:40 2024 by llama3.2 3B Q4_K_M
