Support NeoGAF

[ap_puff]

link

According to a spokesperson, chip designer Advanced Micro Devices, Inc., is laying off a portion of its global workforce. AMD confirmed the development after several anonymous posts on online message boards. AMD, which is currently aggressively targeting the artificial intelligence industry through multiple acquisitions as well as exiting accelerator products, plans to finance its acquisitions through a mix of debt and cash.


As per the details shared online and later confirmed by the firm, the layoffs amount to roughly 4% of AMD's workforce. They surprised several posters on the chat boards, with others confirming that they had heard similar news. AMD's layoffs follow multiple job cuts at the firm's larger rival, Intel Corporation. Unlike AMD, Intel has struggled to retain profitability and has posted losses in two of its latest quarters.

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."


Now, it appears that AMD's mixed-bag performance during Q3 is translating into layoffs. According to the firm and reports on internet chat boards, it is laying off employees. Several posts claim that 1,000 employees, or 4% of AMD's workforce of roughly 26,000, are being let go.

Word on the street is the layoffs hit the GPU/gaming division

 

[James Sawyer Ford]

Why can’t they just “align” them over to the growth areas?

 

[ap_puff]

Why can’t they just “align” them over to the growth areas?

Share price tanked 25% in a month and they're pretty overvalued still by p/e ratio.

 

[DaleinCalgary]

Share price tanked 25% in a month and they're pretty overvalued still by p/e ratio.

hmm, 126 is not a great number. But I want AMD to thrive

 

[ap_puff]

hmm, 126 is not a great number. But I want AMD to thrive

They'll be fine. I do wish they'd stick to their guns in gaming GPUs though. Hopefully this is just a trimming and not a slashing

 

[Angry_Megalodon]

If they are aligning resources, then it's cool. The layoffs will be glad to hear.

 

[rnlval]

link


Word on the street is the layoffs hit the GPU/gaming division

AMD duplicated R&D overheads when they separated CDNA (GCN 5.x Wave64 for HPC) and RDNA (Wave32 with partial Wave64 legacy).

 

[Unknown Soldier]

They are basically going all-in on AI and cutting non-AI projects

Good luck to them I guess, the real competition to Nvidia in AI won't be coming from the likes of AMD and Intel

 

[StereoVsn]

Share price tanked 25% in a month and they're pretty overvalued still by p/e ratio.

Yep. Ans even though 4% layoffs, which could even hurt them long term, would do nothing really relevant, Wall Street vultures will be happier.

 

[kittoo]

Unfortunately gaming is an after-thought for both Nvidia and AMD these days, and AMD's gaming division wasnt performing well to begin with. We are headed for a monopoly.

 

[nowhat]

I have some AMD stock. It's mostly out of activism - at the time I felt we need an alternative for Intel, but as of late Intel has been shooting themselves in the foot so perhaps that was unwarranted. This year has been wild. It topped at +44% YTD, and at that time, AMD processors were literally on fire (yes, the fault of motherboard vendors, but still not great PR). And now, having completely teabagged Intel, it's at -1%. If there's any logic to the stock market, I've yet to decipher it.

 

[lh032]

Imagine ps7 nvidia apu fffffff 1000 dollar basic console with no disk drive

 

[mckmas8808]

They are basically going all-in on AI and cutting non-AI projects

Good luck to them I guess, the real competition to Nvidia in AI won't be coming from the likes of AMD and Intel

Please tell me you're lying.

 

[winjer]

AMD should just fire the whole marketing division.
Those people have been screwing up constantly, for several years.