AMD has announced a wave of layoffs that will result in around 1,000 employees leaving the company. With a workforce of approximately 26,000, the layoffs represent about 4% of the total staff.
The restructuring at AMD is aimed at advancing the company's AI sector. Although AMD has outperformed Intel in the CPU market, shares of its other competitor, NVIDIA, have risen by roughly 200%.
As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%. We are committed to treating impacted employees with respect and helping them through this transition.
In October, AMD stated that projected sales of AI chips for this year are around $5 billion, making up about one-fifth of the total revenue of $25.7 billion.