Advanced Micro Devices (AMD) announced they are laying off 4% of their workforce worldwide to align the company's resources with the market's biggest growth opportunities. The workforce reduction comes after AMD reported profits last quarter that fell short of targets despite an increase.
But the decline in the video game market was recorded causing revenue to drop by almost 70% compared to the previous year. At this point AMD is estimated to have around 26,000 employees. The company's focus is now believed to be on artificial intelligence (AI) to give competition to NVIDIA which has dominated the market for the past three years.
AMD is following in the footsteps of Intel, which has also laid off thousands of workers due to lackluster chip performance and underperforming AI chips that are not competitive with rival chips.