AMD Confirms Laying Off 4% Of Its Employees To Align Resources With “Largest Growth Opportunities”
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According to a spokesperson, chip designer Advanced Micro Devices, Inc., is laying off a portion of its global workforce. AMD confirmed the development after several anonymous posts on online message boards. AMD, which is currently aggressively targeting the artificial intelligence industry through multiple acquisitions as well as exiting accelerator products, plans to finance its acquisitions through a mix of debt and cash.
As per the details shared online and later confirmed by the firm, the layoffs amount to roughly 4% of AMD's workforce. They surprised several posters on the chat boards, with others confirming that they had heard similar news. AMD's layoffs follow multiple job cuts at the firm's larger rival, Intel Corporation. Unlike AMD, Intel has struggled to retain profitability and has posted losses in two of its latest quarters.
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AMD Stock Down 2.7% On Day Of Layoffs At Firm
The rumors of layoffs at AMD come after a mixed third-quarter earnings report, which started a bearish wave for the shares. Since AMD released its third-quarter earnings, the stock has been down by 13.6%. While the firm grew its revenue and profit by 17% and 34%, respectively, during the third quarter, its midpoint revenue guidance of $7.5 billion for the current quarter missed analyst estimates of $7.54 billion.
AMD's earnings report also shared a sharp drop in the firm's gaming division. During the quarter, gaming revenue dropped by a stunning 69% annually to $462 million. The drop led to the division's operating income nearly turning into a loss, marking a 96% drop to $12 million from the year-ago quarter's $208 million. AMD attributed the gaming GPU revenue drop primarily to "lower semi-custom revenue."
Now, it appears that AMD's
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