Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

AMD lays off 4% of its workforce | TechCrunch

Nov 13, 2024 - techcrunch.com
AMD has announced a 4% reduction in its workforce to concentrate on "large growth opportunities," although it is unclear which divisions or how many employees are affected. The move follows a mixed Q3 earnings report, with a 69% year-on-year decline in the company's gaming division and a struggle to compete with rival Nvidia in AI chip sales. AMD's chips have not met the performance of Nvidia's in key AI training workloads, and the company is expected to ship 224,000 GPUs this year, a high volume but insufficient for large customers like Microsoft and Meta.

During the Q3 earnings call, AMD CEO Lisa Su assured investors that the company's future chips will be highly competitive with Nvidia's, with the next-gen MI350-series silicon set to launch in the second half of 2025. However, consensus estimates predict AMD's 2025 revenues to reach $32.6 billion, an increase of just $7.0 billion, while Nvidia is forecast to report quarterly revenues of $33 billion, almost entirely from AI chip sales. AMD's stock has fallen around 4% this year.

Key takeaways:

  • AMD is laying off 4% of its workforce, approximately 1,000 employees, to focus on large growth opportunities.
  • The company's gaming division saw a 69% year-over-year decline, and its guidance for the current quarter missed analysts' expectations.
  • AMD has struggled to compete with Nvidia in AI chip sales due to a lack of inventory and inferior performance in key AI training workloads.
  • AMD's next-gen MI350-series silicon is set to launch in the second half of 2025, with AMD's 2025 revenues forecasted to reach $32.6 billion, up just $7.0 billion.
View Full Article

Comments (0)

Be the first to comment!