AMD to Lay Off 1,000 Employees in Strategic AI Shift

The chipmaker aims to reallocate resources towards AI chip development to challenge Nvidia's dominance.

AMD announced a 4% reduction in its workforce, impacting approximately 1,000 employees out of its 26,000 global staff.
The layoffs are part of a strategic focus on AI chips, a sector where Nvidia currently holds a significant market share.
Despite strong third-quarter financial results, AMD's gaming division saw a 69% revenue decline, influencing the decision to realign priorities.
AMD expects $5 billion in AI chip sales in 2024, a fraction of Nvidia's projected $25.7 billion, underscoring the competitive challenge.
The company has been ramping up investment in AI technology, including the acquisition of Silo AI, to bolster its position in the market.