AMD has confirmed that it is going to lay off 4% of its workforcea measure that will affect approximately 1,000 of its workersto shift your interest internally more toward areas where you see more potential for growth. Among them, according to Techradar, are those related to AI, among which are servers prepared for Artificial Intelligence. Also areas related to data center hardware.
According to a company spokesperson, the layoffs will occur as part of a process launched to align their resources with the growth opportunities they have. Therefore, these are not layoffs due to economic problems, since their latest quarterly results, made public a few days ago, have been solid. This is a strategic measure.
The company has doubled its workforce in recent years to meet demand for high-performance processors used in AI-ready data centers, although its revenue has grown only 23%. The data suggests that this increase is strong and solid, but it is likely that they overestimated their employee needs, which is why they are now making this adjustment.
Just two weeks ago, AMD reported that in the last quarter it had revenues of $6.28 billion, a figure that represents a year-on-year growth of 18% and is 17% higher than the revenues of the previous quarter.
In addition, it has set a record in the income of its data center division: 3.5 billion dollars. It is more than half of its total revenue, and marks a year-over-year increase of 122%, as well as a 25% increase over the last quarter.
They are CEO, Lisa Suthen said that «Going forward we see significant growth opportunities in the areas of data center, client and embedded, driven by insatiable demand for more computing«. Hence its focus has shifted to this area, in addition to Artificial Intelligence.
