AMD (Advanced Micro Devices) has confirmed a plan to reduce its workforce by approximately 4%, which translates to around 1,000 employees globally. The company has not specified the departments that will be affected by this layoff. AMD clarified that this step does not indicate financial difficulties but is instead aimed at reallocating resources towards more profitable products, accelerating its strategy in artificial intelligence and data centers.
Recently, AMD released its third-quarter financial report. The report showed that AMD's revenue and gross margin exceeded expectations under non-GAAP conditions. However, the after-hours stock price fell, which is attributed to their fourth-quarter performance guidance falling short of market expectations.
AMD is the world's second-largest graphics processor manufacturer, following Nvidia. In the GPU market, there is growing concern about Nvidia's dominant position, leading to increased focus on AMD's growth. Many foundational AI model developers are considering developing their own AI chips, but ecosystem and system integration capabilities pose significant challenges in the competitive AI chip industry. In August, AMD announced the completion of one acquisition and the initiation of another. In October, it announced a collaboration with Intel to strengthen the X86 alliance, demonstrating AMD's intention to enhance its internal and external ecosystems.
Throughout this year, AMD's stock price has experienced volatility, declining by over 8%. In contrast, Nvidia's stock price has surged by more than 186%.
