Rumors of layoffs at AMD emerged following a mixed financial report for the third quarter. After its release, the company's stock dropped by 13.6%. AMD reported a revenue increase of 17% and a profit rise of 34%, but its average revenue forecast of $7.5 billion fell slightly short of analysts' expectations.
AMD also highlighted a significant decline in its gaming division. During the quarter, gaming revenue plummeted by an astonishing 69% year-over-year, down to $462 million. The operating income of the division has almost vanished, decreasing by 96% to $12 million, compared to $208 million the previous quarter. AMD refers to this as "lower semi-custom revenue," indicating poor sales of consumer graphics cards.
According to numerous reports online, AMD has begun laying off employees. Publications claim that 1,000 employees, or 4% of AMD's workforce of approximately 26,000 people, will lose their jobs. Anonymous workers have also confirmed to journalists that they or their acquaintances have been dismissed.
One employee said that, although he did not expect to be laid off, he received a "generous" severance package. Another person expressed being in "complete shock" over the unexpected termination, a decision made from above, "bypassing" his managers.
In a statement to Wccftech, an AMD representative confirmed the layoffs. He acknowledged "a reduction of our global workforce by approximately 4%." The company claims it values its employees and is assisting them "in the transition."
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