American chipmaker AMD has confirmed it is laying off 4% of its workforce to focus on “significant growth opportunities.”

The company did not specify how many employees would be affected or in which departments. AMD had about 26,000 employees as of this year, according to the company’s annual filing. Four percent would mean about 1,000 employees.

“We are taking a number of targeted steps to align our resources with our greatest growth opportunities,” AMD told CRN. “We are committed to treating the employees we are reducing with respect and helping them through this transition.”

The cuts come after the release of third-quarter results that showed both revenue and profit growth, but the gaming division fell 69% year-over-year, and guidance for the current quarter missed analysts’ expectations.

AMD has been struggling to make headway in sales of artificial intelligence chips, with rival Nvidia leading the charge. One reason is inventory shortages. AMD is estimated to ship 224,000 GPUs this year, a large number, but not enough to meet the demand of large customers like Microsoft and Meta.

AMD’s chips also don’t compare to the chips that Nvidia offers for mainstream AI training workloads, although AMD positions its products as the best choice for AI training (i.e., runnable models).

During its third-quarter earnings call, AMD CEO Lisa Su tried to reassure investors that the company’s future chips will be very competitive with Nvidia’s chips. “Our next-generation MI350 silicon is very good and will be released in the second half of 2025, with the biggest increase in AI performance since the last generation,” she said.

According to various estimates, AMD’s revenue in 2025 will reach $32.6 billion $7.0 billion in revenue. Meanwhile, Nvidia's quarterly revenue is forecast to be $33 billion, driven almost entirely by sales of AMD chips. AMD's stock price is down about 4% year-to-date.