AMD to cut down global workforce by 4%

AMD on Wednesday said that it would reduce its global workforce by 4% in a bid to focus on its main future growth opportunities. As a result of the decision, the company will have to lay off around 1,000 employees worldwide after doubling its headcount over the past three years. 

“As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%,” a statement from AMD reads. “We are committed to treating impacted employees with respect and helping them through this transition.” 

The workforce reduction is described as a targeted approach, ensuring AMD has the skills necessary in the sectors of its fastest growth, including its data center operations in general and AI processors in particular. It is unclear which of AMD’s business units will feel the brunt of the cuts. 

As of late 2023, AMD employed 25,768 people full-time in addition to 9,526 temporary workers and contractors, which was roughly two times more than the company employed in 2020 (12,637 permanent employees and 5,739 temporary workers). 

AMD’s rival Intel is in the process of laying off some 16,000 people across the company as it is trying to adjust its cost structure with its current earnings. Unlike AMD, Intel has been bleeding money in recent quarters, which at least explains Intel’s reasons for cutting staff. AMD’s statement almost reads like a preference for a lean organizational structure, though it is hard to say how such adjustments will affect the company’s competitive positions here and now.