AMD yesterday laid off about 1,000 of its employees worldwide, or about 4% of its total workforce. The laid-off workers and their acquaintances reported this on anonymous forums, after which the company confirmed that it had made an unpopular decision.
Image source: amd.com
Information about the layoffs was preceded by AMD’s not entirely successful quarterly report – in the third quarter, it increased revenue and profit by 17% and 34%, respectively, but its average revenue forecast for the current quarter of $7.5 billion did not meet the expectations of analysts, who predicted $7 54 billion. The gaming division’s quarterly revenue showed a year-on-year drop of 69% to $462 million, and profit almost slipped into a loss. collapsing by 96% to $12 million, although in the same period last year there was still $208 million.
AMD now intends to launch a full-scale offensive in the field of artificial intelligence through multiple acquisitions, which it plans to finance through cash and debt. The company’s mixed results for the third quarter ultimately resulted in layoffs. AMD employees on anonymous forums Team Blind and The Layoff reported that 1,000 people, or 4% of the company’s 26,000 workforce worldwide, had lost their jobs. The messages came both from people who were subject to the reduction program, and from those who witnessed such incidents. One former employee said he didn’t expect to be fired, but received “a generous severance package that softened the blow.”
When the information became public, AMD did not deny the fact of layoffs. The wave of cuts was made to “align our resources with our largest growth opportunities,” a company spokesperson told Wccftech. They were taken as part of “a series of targeted steps that will unfortunately result in a reduction of our global workforce by approximately 4%.” AMD pledged to “treat affected employees with respect and assist them in this transition.”