AMD to cut 4% of workforce as company pivots to artificial intelligence chips

AMD will lay off around 1,000 employees as it shifts resources to compete in the Artificial Intelligence chip market long dominated by Nvidia.

Advanced Micro Devices is eliminating about 1,000 jobs, or 4% of its global workforce, as it accelerates its push into the artificial intelligence processor market, which is currently led by Nvidia. The move reflects AMD´s new strategy to align its resources with its most significant growth opportunities, particularly in artificial intelligence chips, data centers, and enterprise computing.

The staff reductions are primarily focused on sales and marketing positions related to consumer and gaming PCs—segments where AMD has historically competed with companies like Intel. According to sources familiar with the process, these layoffs target legacy areas as the company realigns toward sectors showing faster revenue expansion and greater strategic importance, such as artificial intelligence accelerators demanded by cloud providers and large corporate clients.

Despite the cuts, AMD continues to hire for roles in its growth-targeted divisions, underscoring a broader industry trend of legacy technology giants restructuring to capture emerging opportunities in artificial intelligence and advanced computing. The announcement parallels similar workforce reductions at other Silicon Valley stalwarts: Cisco is trimming over 6,000 jobs, and Intel is reducing its headcount by about 15%, signaling a major competitive realignment in the sector as artificial intelligence reshapes hardware and investment priorities across the industry.

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