Despite remaining optimistic about its 2025 MI350-series chip launch, AMD announces a 4% workforce cut amid challenges in the AI chip market and competition with Nvidia.
Advanced Micro Devices (AMD) has revealed plans to cut its global workforce by 4%, which translates to roughly 1000 job reductions, according to a CNBC report.
An AMD spokesperson explained that the company was making targeted adjustments to better align its resources with key growth opportunities, which would, unfortunately, lead to a 4% reduction in its global workforce.
The company highlighted that the affected employees will be treated with respect and provided support throughout the transition.
Lately, AMD has been having difficulty competing with Nvidia in the AI chip sector. It struggles with inventory issues and falls behind the latter in critical AI training workloads. While Nvidia’s stock has surged nearly 200% in 2024, AMD’s stock has dropped 5%.
Furthermore, despite a 29% increase in AMD’s personal computer division, its gaming business has experienced a steep 69% year-over-year decline.
Nevertheless, AMD remains optimistic about its upcoming MI350-series chips, which are expected to be released in the second half of 2025. The company anticipates these new processors will significantly boost AI performance.
During the company’s Q3 earnings call, AMD’s CEO, Lisa Su, expressed confidence in the upcoming launch of the MI350-series silicon, noting that it was progressing well and was on track for a late-2025 release. She added that the new series would deliver the largest generational leap in AI performance the company had ever seen.
