AMD may lay off as many as 450 people from its R&D center in Shanghai, China. The layoff ratio in this round is allegedly 10-15%, with the bulk being from the Radeon Technology Group (RTG). RTG is AMD’s GPU Division responsible for the RDNA dGPUs, iGPUs, and custom console designs. AMD’s R&D center in Shanghai is its largest R&D center outside the US, with up to 3,000 active employees.
According to insiders, all internal conference rooms in Shanghai have been booked by HR for the 25th of October, a common practice before layoffs. The Shanghai R&D Center has contributed much to the Ryzen CPU family and the Radeon iGPUs found on notebook processors.
AMD’s Radeon “RTG” Division hasn’t been doing that well. NVIDIA one-upped its Radeon RX 6000 and 7000 series GPUs with superior ray-tracing (dubbed RTX) and upscaling (DLSS) technologies. Although open-source, AMD’s FSR 2 hasn’t seen the same adoption as its rival. The third iteration, FSR 3, was a year late to the market, touching base when DLSS 3 was already supported in several dozen titles.
If that wasn’t bad enough, AMD has allegedly scrapped its next-gen higher-end Radeon RX 8800 and 8900 series GPU, leaving the lucrative high-end segment entirely. Team Red re-entered the enthusiast market with the RDNA 2 family after a several-year hiatus, and within two generations, history may repeat itself.
AMD’s financial earnings for the second quarter of 2023 came in at $5.4 billion, a YoY dip of 18%. However, the net profit was a mere $27 million, a 94% decrease from the $447 million recorded last year.