Computer chipmaker AMD is laying off around 1,000 employees, or around 4% of its workforce, becoming the latest Silicon Valley tech giant to slash expenses.
The Santa Clara company said it is "aligning our resources with our largest growth opportunities." AMD, which stands for Advanced Micro Devices, has 26,000 workers and builds chips that power artificial intelligence companies, as well as for video gaming.
Last month, AMD reported third-quarter revenue of $6.82 billion, which beat analyst forecasts. But its guidance, or estimate for future earnings, for around $7.5 billion in revenue in the fourth quarter came below analyst estimates.
AMD's stock was down around 3% on Wednesday and is mostly unchanged this year. In contrast, its biggest rival Nvidia's stock has more than tripled.
There were also layoffs at smaller Bay Area companies. Online education company Chegg is laying off 319 workers, 21% of its staff, according to a Securities and Exchange Commission filing. User traffic has declined, which CEO Nathan Schultz blamed on artificial intelligence tools. The Santa Clara company previously laid off 441 workers in June.
In another blow to the local tech sector, San Francisco health care startup Forward is shutting down, the Information reported.
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Silicon Valley Chipmaker AMD to Cut 1,000 Jobs
The chipmaker is laying off around 1,000 employees, or around 4 percent of its workforce, becoming the latest Silicon Valley tech giant to slash expenses.
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