AMD Lays Off 1,000 to Boost AI Focus

AMD is laying off approximately 1,000 employees, or 4% of its global workforce, as part of a strategic move to focus on the rapidly growing AI chip market. Despite shipping an estimated 224,000 GPUs this year, AMD struggles to compete with market leader NVIDIA, which holds around 80% market share in AI chips. The layoffs, which primarily affect sales and marketing divisions, aim to streamline operations and reallocate resources towards AI, where AMD projects $5 billion in sales this year. This comes amid AMD's mixed financial performance, with a notable 69% decline in its gaming division and stock falling 4% this year, while NVIDIA's stock has surged over 200%. The company remains committed to innovation, with plans to launch new AI chips, like the MI350-series, to enhance competitiveness. These layoffs mirror industry-wide trends, as rivals like Intel also make workforce reductions to adapt to changes in the tech landscape.