AMD

said on Wednesday that it will lay off 4% of its global staff as the longtime computer chipmaker seeks to gain a stronger foothold in the growing artificial intelligence chip space dominated by Nvidia.



"As a part of aligning¹ our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce² by approximately 4%," an AMD representative said in a statement. "We are committed to treating impacted employees with respect and helping³ them through this transition."

GPUs were originally developed for gaming, which is lagging at AMD. AMD's gaming segment is expected to decline 59% in 2024 to $2.57 billion in revenue, according to FactSet.



AMD also makes processor chips for laptops, desktops⁴ and servers, competing primarily with Intel. Its share of server CPU sales rose nearly 3% on an annual basis in the third quarter to 34%, according to Mercury Research.