AMD has joined other tech firms in cutting jobs as it shifts focus toward the booming AI market. The company announced a 4% reduction in its workforce, translating to about 1,000 layoffs out of its 26,000 employees.
The driving force behind these layoffs is clear: AI is where AMD sees the most potential for growth. Their AI accelerators for data centers and Ryzen processors for AI-enabled PCs helped the company report an 18% year-over-year revenue increase in the quarter that ended on September 28. CEO Lisa Su highlighted this in her statement, noting record revenue driven by strong sales of EPYC CPUs and Instinct data center products.
For AMD to sustain this momentum, it needs to transition from traditional technologies to AI products and hire the right talent for this shift, as noted by Victor Janulaitis, CEO of labor market research firm Janco Associates. He emphasized that AI is the focus for many corporations, and AMD hasn’t kept pace.
But workforce changes aren’t the only part of AMD’s strategy. In August, the company announced plans to spend $4.9 billion to acquire ZT Systems, which specializes in AI and cloud computing solutions for large data centers. They anticipate closing this deal in the first half of next year.
Experts point out that attracting and keeping skilled workers in AI is essential for AMD’s future. In its latest filing with the SEC, AMD acknowledged intense competition for talent in AI and machine learning. The number of graduates specializing in AI is on the rise but still falls short of meeting demand. Between 2010 and 2022, the growth rate of graduates in this field was about 5% annually, according to the Center for Security and Emerging Technologies.
Janulaitis noted that AI specialists are not easily accessible in today’s job market. Currently, about 10% of tech job postings seek candidates with AI skills, up from 6% just two years ago, according to CompTIA.
Other firms are also reshaping their workforces to attract AI expertise. This year, the tech industry has seen nearly 147,000 layoffs attributed to changes driven by AI, as tracked by Layoffs.fyi. For example, Cisco plans to cut over 6,300 jobs, approximately 7% of its workforce, to align with its growth areas in AI, cybersecurity, and cloud services.
Intel is facing troubles for not capitalizing on the AI surge and recently announced it would cut 15% of its workforce—over 15,000 jobs—by the year’s end. They are also planning to slash $10 billion in capital expenditures in 2025. Analysts note that a significant part of Intel’s challenges stems from lacking a competitive AI product compared to AMD and Nvidia.
Antone Gonsalves, an editor at large for TechTarget Editorial, covers key industry trends affecting enterprise tech buyers and has two decades of experience in tech journalism. If you have a news tip, you can reach him via email.