Advanced Micro Devices (AMD, Financial) has announced that it decided to lay off nearly a thousand of its employees, which constitutes 4% of its total headcount, as it plans to make necessary adjustments due to some issues it is experiencing in a challenging environment. There was a 29% growth for the personal computer segment, but at the same time, there has been a 69% YoY decline in the gaming division. Challenges experienced by AMD when competing with market leader Nvidia in the new and expanding AI chip market have exerted more pressure on the company's stock, which is down by 5% in the year.
It has had problems with supply chain and inventory and has been unable to capture another angle of AI training workloads that Nvidia did, affecting a larger market. Nevertheless, AMD is still looking to the future and focuses on optimizations in the AI department, especially with the upcoming solutions that include the MI350 series silicon, which should appear in 2025 and contribute to the significant development of the AI community. According to CEO Lisa Su, the next-generation chips are expected to bring the company its most significant generational jump in artificial intelligence capabilities. On the one hand, layoffs can be viewed as a strategy to achieve better concentration on developing the most profitable and promising fields; conversely, they reveal the constant problems in the semiconductor and AI market segments.
