The competition to occupy a leading position in the artificial intelligence sector is fierce, and more and more companies are focusing most of their resources on the development of this new branch. AI promises to be a new giant leap for the business world, and companies, especially those in the technology sector, need to devote most of their resources to the business. SO, AMD, the microprocessor company, has decided to lay off 4% of its staffa move to focus its efforts on the markets that promise the most growth.
“In order to align our resources with the strongest growth opportunities, we are taking certain actions which, unfortunately, will result in a reduction of our workforce by approximately 4%,” the company announced publicly on Wednesday. There will be around 1,000 jobs which, according to publications BloombergCiting company sources who wish to remain anonymous,They worked in sales and marketing for the personal computer and gaming computer divisions.
This decision follows that made by Cisco last August. The technology company then announced that it would adjust its workforce, with thousands of layoffs, to free up resources and focus them on AI-related products, as the company’s chief financial officer explained at the time. ‘business.
Year to date, AMD shares are up just 1.6%, in a year in which stocks of companies most closely tied to artificial intelligence have risen very strongly. Nvidia, the big leader in this sector, is up 205%, and its competitors, like AMD or Intel, are trying to accelerate their AI segment to avoid being left behind. Since AMD shares hit $210 in the first quarter, its shares have fallen 33%, reaching around $140 today.
This decline seems to have been enough to try to push the company in the right direction, and the company clearly seems to understand that this now means focusing on AI. The company has been trying to gain a foothold in this sector for some time and is also accelerating in the data storage center segment.
The company, as explained Bloombergcontinues to hire on a net basis, which confirms that this layoff has nothing to do with a bad short-term situation or poor prospects, but rather with a strategic change to be able to gain a foothold in the new company which seems to be the key to the technology sector in the years to come.
