AMD to Lay Off 4% of Workforce, Aiming to Realign for Growth in the AI Chip Market as Rival Nvidia Holds Majority Market Share

AMD plans to lay off 4% of its workforce, about 1,000 employees, as part of its strategy to strengthen its position in the AI chip market, which Nvidia currently dominates. This decision aligns AMD’s resources with high-growth areas, as it aims for $5 billion in AI chip sales this year, roughly 20% of its total projected 2024 revenue. The company eyes a share of the $500 billion AI chip market anticipated by 2028. AMD's gaming segment, originally a major GPU application, is forecasted to fall 59% this year. AMD has made gains in server CPU sales, holding 34% of the market.