AMD Layoffs: Why They’re Happening and What to Expect
Why is the reason for AMD layoffs?
Advanced Micro Devices (AMD) recently announced that it will lay off 4% of its global workforce as part of a strategic effort to “align resources with its largest growth opportunities.” According to AMD, the layoffs are intended to focus resources on key growth areas, especially as the company pushes into the artificial intelligence sector and plans to fund new acquisitions through cash and debt.
Initial news of the layoffs surfaced on online forums, where users claiming to be AMD employees shared that about 1,000 workers had been let go. Many employees expressed surprise at the layoffs, particularly given that the company recently reported year-over-year increases in revenue and profit. Posts on forums like Team Blind and The Layoff indicate that these job cuts affected various departments, and employees reported feeling both surprised and disappointed by the news.
Was There Any Financial Warning Sign?
The timing of these layoffs follows AMD’s mixed Q3 earnings report, which sparked concern in the market. While AMD saw a 17% revenue increase and a 34% profit boost during the quarter, its revenue guidance of $7.5 billion for the next quarter fell slightly below analyst expectations. Additionally, AMD’s gaming division experienced a sharp revenue drop of 69%, largely due to lower revenue in the semi-custom GPU segment.
How Does AMD’s Situation Compare to Intel?
AMD’s layoff announcement comes in the wake of broader struggles in the chip industry, where competitors like Intel have also reduced their workforce amid financial challenges. While Intel has faced significant profitability issues, AMD’s layoffs are part of a targeted restructuring. Despite recent stock drops following the Q3 report, AMD has maintained positive revenue growth, setting it apart from some competitors in the industry.
AMD stated that it is “committed to treating impacted employees with respect and helping them through this transition.” Some employees shared online that they received severance packages, with one person noting it helped “soften the blow.” The company aims to support impacted workers while refocusing its resources on high-growth areas.
What Should AMD Employees Know About Severance?
If you’re an AMD employee in Canada affected by the layoffs, you may be eligible for a severance package. Severance pay is calculated based on factors like your length of service, position, and age, with potential packages extending up to 24 months of pay for some non-unionized employees. At Whitten & Lublin, our employment lawyers are here to help you understand your severance rights and ensure you receive fair compensation. If you’re affected by these layoffs, contact us for a consultation through our online or by phone at (416) 640 2667.