AMD China to Experience Massive Downsizing, Radeon Technology Group Affected The Most
AMD's "Radeon Technologies Group" in China will reportedly get hit with a massive layoff, with an expected workforce reduction of 10-15%, pertaining to the YoY decline in revenue.
The news comes from the Chinese media outlet ICsmart.cn, where they cite an individual within the company's social platform. It is disclosed that the expected layoff figure is around 450 employees, with a significant portion of it coming from the "Radeon Technologies Group" or RTG, responsible for the consumer GPU segment. While the source hasn't disclosed a specific reason behind the upcoming "layer" of wave-offs, it is being associated with the continuous decline in revenue for Team Red in all divisions, as well as in profit margins, which have been reduced to an "alarming" 97% compared to the previous year.
It is being reported that AMD Shanghai, which is the company's main division, has approximately 3,000 employees working at its R&D center, where the layoffs are anticipated. If the affected employees reach the 450 mark, that accounts for a major portion of getting laid off, which is something to worry about for the industry as a whole. Since AMD's decision may be targeted towards its Radeon GPU portfolio, it can be said that Team Red isn't doing good in the markets, mainly because of the fierce competition it faces from the likes of NVIDIA and Chinese startups like Moore Threads and BirenTech.
To further worsen the situation in mainland China, the US administration is implementing trade policies to restrict several AI GPUs from NVIDIA and AMD from being exported to the country & that's something that is also a cause of concern for NVIDIA as reported here.
With the AI demand substituting for consumer graphics, the decision does make sense in a
Read more on wccftech.com
