By Sabela Ojea


Advanced Micro Devices is reducing its global workforce by 4% after reporting that most of the growth it sees comes from its AI chips and other products for data centers.

Shares fell 2.2% to $140.44 in midday trading. The stock has dropped 4.8% since the beginning of the year, though is up 19% over the past 12 months.

The chip maker better known as AMD on Wednesday said this round of layoffs is part of a shift in its broader business strategy.

"As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%," the company said in a statement.

The layoffs would affect about 1,040 employees. ADM had a global workforce of 26,000 employees as of Dec. 31, according to its latest annual filing with the Securities and Exchange Commission.

The decision comes shortly after Intel said its previously planned layoffs would total 16,500, up from a previous target of roughly 15,000.

It also follows a sharp rise in AMD sales for the third quarter, but a slightly weaker-than-expected outlook for the fourth quarter on what analysts saw as a potential slowdown on its business momentum.

Still, in a call with analysts late in October, Chief Executive Lisa Su raised her projection for AMD's sales of AI chips this year to $5 billion from a $4.5 billion forecast in July.


Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix


(END) Dow Jones Newswires

11-13-24 1331ET