The competition to have a prominent position in the Artificial Intelligence business is red hot, and more and more companies are focusing most of their resources on the development of this new leg. AI promises to be a new giant leap for the business world, and companies, especially those in the technology sector, need to dedicate most of their resources to the business. Therefore, AMD, the microprocessor company, has decided to lay off 4% of its staffa movement carried out 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 some steps that, unfortunately, will result in a cut to our workforce of about 4%,” the company announced publicly this Wednesday. There will be about 1,000 jobs that, according to publications Bloombergciting company sources who wish to remain anonymous, sThey were from the sales and marketing side of the personal computer and gaming computer divisions.
This move follows one Cisco carried out last August. The technology company then announced that it would carry out an adjustment to its workforce, with thousands of layoffs, to free up resources and focus them on products related to AI, as explained by the firm’s CFO at that time.
So far this year, AMD shares have barely risen 1.6%, in a year in which the titles of the firms most closely linked to artificial intelligence have risen very strongly. Nvidia, the great leader in this sector, is up 205%, and its competitors, such as AMD or Intel, are trying to accelerate their AI segment so as not to be left behind. Since AMD’s shares hit $210 in the first quarter, its shares have fallen 33%, to around $140 today.
This decline seems to have been enough to try to push the company in the right direction, and the firm seems to be clear 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 from Bloombergcontinues to hire workers on a net basis, which confirms that this dismissal has nothing to do with a bad short-term situation, or bad prospects, but rather with a strategic shift to be able to gain a foothold in the new business that seems to be the key to the technology sector in the coming years.
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