The layoffs make sense when you see most of the biggest tech companies are doing layoffs with healthier financials than AMD and AMD current headcount and cashflow.
AMD headcount exploded in 2022 with 25k employees. A 61% increase in employees vs 2021. This is near Nvidia levels.
Interactive chart of AMD (AMD) annual worldwide employee count from 2010 to 2023. <ul style='margin-top:10px;'> <li>AMD total number of employees in 2022 was <strong>25,000</strong>, a <strong>61.29% increase</strong> from 2021.</li> <li>AMD total number of employees in 2021 was...
www.macrotrends.net
This matched a similar explosion in revenue in 2022.
AMD annual/quarterly revenue history and growth rate from 2010 to 2023. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Revenue is the top line item on an income statement from which all costs and expenses are...
www.macrotrends.net
However, look at 2023 numbers and you will see a significant slow down.
Revenue has been down and cannot maintain current spending. Net income has been brutal for AMD the last 9 months with losses for 2 of the last 3 quarters.
AMD annual/quarterly net income history and growth rate from 2010 to 2024. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. <ul style='margin-top:10px;'> <li>AMD net income for the quarter ending...
www.macrotrends.net
So to mitigate risk and economic uncertainty, a headcount reduction on probably the least profitable division at AMD makes sense.
I doubt it has anything to really do with politics as this is too small of a move to really matter. China is also at the forefront of fresh engineering talent with 5(including the top spot) and arguably 6th of the top engineering schools in the world. The US is only in two of these spots in the top 10. It will be harder to get cheaper and better talent than China.
AMD is just like the rest of the tech industry in 2023(besides Nvidia) that is implementing cost saving measure as a result of shrinking revenue and lack of growth.