Rumors of layoffs at AMD emerged after an ambiguous financial report for the third quarter. After its release, the company’s shares fell by 13.6%. AMD increased its revenue and profit by 17% and 34%, respectively, and its average revenue forecast of $7.5 billion is slightly below analysts’ expectations.
AMD also notes a sharp decline in the company’s gaming division. During the quarter, revenue from games fell by a staggering 69% year-on-year to $462 million The division’s operating income almost disappeared, down 96% to $12 million, compared to $208 million last quarter. AMD calls this «lower semi-custom revenue», which means poor sales of custom graphics cards.
According to numerous confirmations on the Internet, AMD has begun laying off employees. publications claim that 1000 employees, or 4% of AMD’s team of approximately 26,000 people, will lose their jobs. Anonymous employees also confirm to journalists that they or their friends have been laid off.
One of them says that although he did not expect to be fired, he was fired with «generous» compensation. Another says that he was in «complete shock» from the unexpected dismissal, which was decided from above, «over the head» of his managers.
In a statement for the website Wccftech An AMD spokesperson confirmed the layoffs. He confirmed a «reduction in our global workforce of approximately 4%». The company says it respects employees and is helping them «with the transition».
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