Overview

• 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.