AMD is cutting 4% of its workforce, impacting around 1,000 employees, to refocus its operations on the fast-growing AI chip market. The company aims to compete more effectively with Nvidia, which currently dominates the sector. AMD, with 26,000 employees at the end of 2023, is streamlining operations and reallocating resources to key growth areas like AI, targeting $5 billion in AI chip sales this year. The layoffs primarily affect sales and marketing roles related to consumer and gaming PCs. This move comes as Intel also plans significant job cuts.