The layoffs at AMD’s research and development center in Shanghai will affect up to 450 employees

The layoffs at AMD’s research and development center in Shanghai will affect up to 450 employees

According to media sources, AMD’s development team in China is facing a large-scale layoff. In total, the company intends to lay off up to 15% of its total workforce as part of cost cutting. Layoffs at AMD’s Shanghai research center will affect 450 employees.

The main reason for the massive layoffs at AMD is the decline in revenue for several quarters in a row, as well as profitability, which has fallen to an “alarming” 97% compared to the previous year.

A large part of the new cuts will affect the Chinese division of Radeon Technologies Group (RTG), which is responsible for the segment of consumer graphics processors. Employees of this area of ​​AMD work in the AMD research center in Shanghai, which was opened in 2006. A variety of R&D is conducted there, including the development of all current AMD technologies and products from Ryzen processors to Radeon video chips.

AMD’s research center in Shanghai was thought to have about 3,000 employees in mid-2023. According to industry experts, the main reason for layoffs was the tougher competition that AMD has faced recently from Nvidia, as well as Chinese startups such as Moore Threads and BirenTech.

In addition to the problems with funding the layoffs, a restrictive trade policy by the US, which bans the export of high-tech AI solutions from Nvidia and AMD to China, contributed. These companies have begun moving development centers from China to other countries and expanding existing US research units.

Earlier, Nvidia published a document with a list of devices subject to new US export restrictions. The new sanctions affected computing accelerators and even the company’s flagship video card GeForce RTX 4090, which is now banned from distribution in China and other countries. As Nvidia explained, the sanctions are designed to prevent China from accessing advanced American technologies.

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