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    Blue Tech Wave Media
    Home » AMD trims workforce to invest in AI growth
    November-14-AI-news
    November-14-AI-news
    AI

    AMD trims workforce to invest in AI growth

    By May ZhangNovember 14, 2024No Comments2 Mins Read
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    • AMD reduces workforce by 4%, cutting 1,000 jobs
    • Job cuts focus on consumer PC and gaming sales roles
    • Strategic shift to AI and data center markets

    __________

    What happened

    AMD is laying off around 1,000 employees, or 4% of its workforce, to focus on AI and data centers. Known for consumer PC processors, the company is redirecting resources to compete in the fast-growing AI chip market, dominated by Nvidia. This comes amid broader Silicon Valley cutbacks, as AMD aligns its workforce with key growth areas. The layoffs mostly affect sales and marketing roles in consumer and gaming PCs, which have slowed as AMD prioritizes AI and data centers. Despite the cuts, AMD continues hiring for AI-related positions. The shift mirrors a wider trend in tech, with companies turning to AI to stay competitive.

    Also read: AMD’s $4.9B acquisition to boost AI dominance

    Also read: Microsoft’s earnings: Investors eye AI growth amid rising costs

    Why it is important

    AMD’s decision to lay off 1,000 employees and focus on AI highlights a wider trend in tech: the rise of artificial intelligence and data centers. AI is reshaping industries, with companies pivoting to tap into this high-growth market. AMD, once a challenger to Intel in consumer PCs, now faces stiff competition from Nvidia, which leads in AI hardware.

    This shift shows how tech companies are adapting to market changes. Companies like Microsoft and Google have invested heavily in AI, and now AMD is following suit. The layoffs mainly affect sales and marketing roles in consumer and gaming PCs, as AMD refocuses on AI and data centers. For tech professionals, this marks a key moment, signaling that AI will drive both innovation and jobs in the sector.

    AI AMD Google Microsoft Silicon Valley
    May Zhang

    May Zhang is an intern reporter at BTW Media, having studied Finance at University of Manchester. She specialises in fintech and business. Contact her at m.zhang@btw.media.

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