According to recent news, a workplace social platform revealed that AMD Shanghai will lay off employees indiscriminately, with a layoff ratio of around 10% to 15%. The list will be announced next Wednesday (October 25), with nearly four to five hundred people.

It is understood that on October 25th, all the conference rooms in AMD Shanghai were booked by HR (a precursor to layoffs), and the RTG department was the hardest hit area. The specific compensation plan for AMD's layoffs has not yet been determined. Referring to the layoffs of other foreign companies in China, the N+4 and N+7 compensation plans circulating on the Internet are not impossible.

Some AMD Shanghai employees said there should be layoffs, but the scope and number of layoffs were not as exaggerated as reported online. Assuming 2,000 employees and 10%, approximately 200 employees will be laid off.

Regarding this layoff, the superficial factors are sluggish demand for consumer electronics, the semiconductor downturn has not bottomed out, and the industry’s prosperity has not improved.

The downward trend is also reflected in performance. On August 2 this year, AMD's Q2 financial report as of July 1, 2023 showed that the company achieved revenue of US$5.4 billion in the second quarter, which was higher than the expected US$5.311 billion. However, AMD's net profit was only US$27 million, a 94% decrease from US$447 million in the same period last year. AMD expects Q3 revenue of US$5.4 billion to US$6 billion, with the median third-quarter revenue guidance lower than analysts' expectations of US$5.84 billion.

Some people also analyze that AMD Shanghai mainly develops GPUs, which may be related to the new sanctions imposed by the United States. It is only a matter of time before semiconductor manufacturers like AMD withdraw from China. The R&D departments involved in core technologies should be the hardest hit by layoffs. Non-core departments such as sales and marketing technical support should still be able to hold on.

AMD (AMD) is a world-renowned chip manufacturer that mainly produces CPUs, GPUs, APUs and other products. It competes with Intel, Nvidia and others in the PC, server, game console and other markets.

According to its official website, AMD was founded in Silicon Valley in 1969 with only a few dozen employees and is a leader in high-performance and adaptive computing. AMD supplies a variety of integrated circuit products for the computer, communications and consumer electronics markets, including central processing units, graphics processors, flash memory, chipsets and other semiconductor technologies. The company's main design and research institutes are located in the United States and Canada, its main production facilities are in Germany, and it also has testing centers in Singapore, Malaysia and China.

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