AMD recently announced that it will lay off about 4% of its employees, with the number of layoffs expected to be less than 1,000. The move comes as AMD overtakes Intel in the x86 processor market, but also faces the challenge of fierce competition with Nvidia in the field of AI accelerators. The editor of Downcodes will conduct an in-depth analysis of this layoff event and explore the reasons and impacts behind it.
The American semiconductor company AMD recently announced that it will lay off about 4% of its global employees, with the number of layoffs expected to be less than 1,000. This move comes as AMD continues to surpass Intel in the x86 processor market. However, in the transition from graphics processing units (GPUs) to artificial intelligence (AI) accelerators, AMD is facing fierce competition with industry giant Nvidia. compete.
An AMD spokesperson said: "In order to align resources with our greatest growth opportunities, we have taken a number of targeted steps that will unfortunately result in a reduction of approximately 4% of our global workforce." The company promises to treat with respect affected employees and provide assistance during the transition.
According to AMD's SEC filings last year, the company had about 26,000 employees at the time. Now AMD only said that the number of layoffs will be less than 1,000. Although AMD forecasts that AI chip sales will reach $5 billion this year, its total revenue target is $25.7 billion, which shows that AMD's challenges in this area still exist.
Although AMD occupies an important position in the processor and GPU market for game consoles, AMD's growth has been restricted due to the lower-than-expected performance of the new generation product market, especially the supply shortage of PlayStation 5 and Xbox Series X/S affected by the epidemic. .
According to a Mercury Research report, AMD's current share of the processor market compared to Intel has reached 34%, which is a significant increase from the past. However, analyst Jon Peddie said he was surprised by AMD's layoffs. He mentioned in a message to GamesBeat: "AMD's recent quarter performance has been good, although it did not meet the expectations of some Wall Street analysts. But based on the number of employees, AMD does not seem to be too crowded, and the timing of layoffs now seems very bad. ”
To sum up, AMD has to take layoff measures in the current fiercely competitive market environment to adjust resources and focus on growth areas with greater potential.
AMD's layoffs reflect the fierce competition in the semiconductor industry and the challenges the company faces in strategic adjustment. Whether AMD can successfully transform and gain a foothold in the AI field in the future remains to be seen. The editor of Downcodes will continue to pay attention to the subsequent development of AMD.