AMD has confirmed that it is laying off approximately 4% of its global workforce. This move comes after online rumors and a mixed third-quarter earnings report. The company stated that the layoffs are part of a restructuring effort to focus on its "largest growth opportunities," particularly in the AI sector.
Q3 Earnings and Gaming Revenue Decline
AMD's Q3 2024 earnings report showed a 17% year-over-year increase in revenue and a 34% increase in profit. However, the company's revenue guidance for Q4 2024 fell short of analyst expectations. A significant factor contributing to this was a substantial 69% drop in gaming revenue, primarily attributed to "lower semi-custom revenue."
Layoff Details
Reports from online message boards suggest that approximately 1,000 employees are affected by the layoffs. Several anonymous posts on platforms like Team Blind and The Layoff described the impact of the job cuts on employees.
The layoffs are "a part of aligning our resources with our largest growth opportunities." - AMD Spokesperson
AMD is following in the footsteps of its rival, Intel, which has also conducted multiple rounds of layoffs recently due to financial challenges.
