Santa Clara, November 14: NVIDIA's rival AMD has announced laying off 1,000 employees from its global workforce to focus on developing AI chips. Advanced Micro Devices, or AMD, is facing severe competition in the industry with companies like NVIDIA, TSMC, and Intel amid the rise of artificial intelligence. The AMD layoffs will affect around 4% of the workforce.

The AMD spokesperson highlighted that the company announced the layoffs as part of its targeted steps to align its resources with the largest growth opportunities. The spokesperson said that  AMD would help the employees affected by the job cuts in their transition. This year, Intel, another chipmaker in the industry, announced a mass layoff round affecting thousands of people. NASA JPL Layoffs: US Space Agency’s Jet Propulsion Laboratory Reduces 5% of Its Workforce Amid Budget Constraints.

According to reports, AMD has faced the biggest challenge from the chip giants like NVIDIA. The company is also said to have struggled with issues related to the inventory and is facing AI workloads that do not match NVIDIA. The 4% workforce reduction is aimed at helping the company manage its existing resources and avail the opportunities in the artificial intelligence chip manufacturing industry. 

AMD suffered financially this year, while its rival NVIDIA's stock went up 200%,  its valuation rose to trillions, and its stock went down by 5%. Despite challenges, the company is thinking on the bright side with its next-generation MI350-series silicon coming in 2025. This may provide an additional boost to the company in the AI field. Stellantis Layoffs Continue: After Cutting 1,100 Roles in Ohio Jeep Plant, Global Automotive Manufacturer To Lay Off More 400 People in Detroit.

AMD CEO Lisa Su said that the next-gen processors would likely have a generational increase in the AI performance which AMD has ever delivered. This year, many tech giants laid off thousands of employees amid saving costs, restructuring, and failing to face market competition. The AI industry already has many companies competing with each other to offer the best products and services in the market.

(The above story first appeared on LatestLY on Nov 14, 2024 11:01 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).