Not a good news for future of AMD's GPU business
AMD Confirms Laying Off 4% Of Its Employees To Align Resources With “Largest Growth Opportunities”
In a statement given to
Wccftech, an AMD spokesperson confirmed the layoffs. According to AMD, the layoffs are "
a part of aligning our resources with our largest growth opportunities." They are part of "
a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%." AMD added that it is "
committed to treating impacted employees with respect and helping them through this transition."
Earlier:
According to a post on the message board Team Blind, 4% of AMD's employees were laid as part of worldwide layoffs today. The original poster saw several replies to their posts, most confirming the redundancies. One user commented that their friend had confirmed the 1,000 number, with another confirming that they were laid off as well.
Another post on the message board, The Layoff, also mentioned the redundancies. In response to the original poster's statement sharing that they were "
affected by the layoff," four anonymous users shared that either they or someone they knew were affected. One user commented that while they were not expecting to be laid off, they got what they "
consider to be a generous severance, which softens the blow."
Another commented that they "
just found out" and were in "
total shock." According to them, "S
upposedly the decision was made “way up high” beyond my managers hands but it still feels personal." Two others shared that people they had worked with had been let go by AMD.
Also:
AMD Stock Down 2.7% On Day Of Layoffs At Firm
The rumors of layoffs at AMD come after a mixed third-quarter earnings report, which started a bearish wave for the shares. Since
AMD released its third-quarter earnings, the stock has been down by 13.6%. While the firm grew its revenue and profit by 17% and 34%, respectively, during the third quarter, its midpoint revenue guidance of $7.5 billion for the current quarter missed analyst estimates of $7.54 billion.
AMD's earnings report also shared a sharp drop in the firm's gaming division. During the quarter, gaming revenue dropped by a stunning 69% annually to $462 million. The drop led to the division's operating income nearly turning into a loss, marking a 96% drop to $12 million from the year-ago quarter's $208 million. AMD attributed the gaming GPU revenue drop primarily to "
lower semi-custom revenue."
https://wccftech.com/amd-confirms-l...-resources-with-largest-growth-opportunities/