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NVIDIA will provide severance packages, counseling and job placement for employees let go

NVIDIA is having a rough time with woes coming from its stock price to its products having stiffer competition in the marketplace from the likes of AMD. NVIDIA announced yesterday that it would be decreasing its work force by over 6.5% in an attempt to save money that it can put towards other areas.

The work force reduction amounts to about 360 employees from its worldwide work force. NVIDIA employees in the U.S. are affected as well.

NVIDIA also announced that it will take a restructuring charge of between $7 and $10 million in its Q3 financial results. The charge will be used to fund severance packages and related expenses.

NVIDIA CEO Jen-Hsun Huang said in a statement, "Our action today is difficult, but necessary considering current business realities. Despite our reduction, we will continue to invest in selective high-growth opportunities like our revolutionary CUDA parallel computing technology and our Tegra mobile single-chip computer. We are taking fast action to enhance our competitive position and restore our financial performance. All of us at NVIDIA are determined to emerge from these challenges an even stronger company."

NVIDIA says that it will provide not only severance packages to affected employees, but it will also provide counseling and job placement services as well. Layoffs at NVIDIA are expected to be complete by the end of Q3.

NVIDIA has more than layoffs on its plate right now. It is fighting a pair of proposed class action lawsuits over whether or not it mislead investors about the potential consequences of GPUs in its notebook products that failed at higher than normal  rates. NVIDIA announced in July that it would take a onetime charge of $150 to $200 million related to expenses and replacements of the GPUs that failed.



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360 people ?
By MarcLeFou on 9/19/2008 3:39:30 PM , Rating: 2
I always figured NVIDIA to be a much bigger company.

It's surprising that a company with about 2300 employees managed to generate over 4 billions in revenue in its last fiscal year - about 1,7M$ per employee. That's quite an astonishing feat.

I wonder how they compared to ATI (before AMD bought them out).




RE: 360 people ?
By uminatsu on 9/19/2008 9:13:06 PM , Rating: 2
I'm afraid your math is wrong... 360 / 6.5% is about 5500, not 2300.


RE: 360 people ?
By 16nm on 9/20/2008 12:59:19 PM , Rating: 3
yep, 360/x=.065

You know, its amazing how fast fortunes change in this industry. Wasn't long ago ATI was in the ditch and Nvidia was riding high. One small misstep and things can turn bad.


RE: 360 people ?
By sxr7171 on 9/22/2008 12:33:25 AM , Rating: 1
One small mistake? The CEO talked the big talk but couldn't walk the walk. Also in this business you don't mess with Intel and Microsoft too much if you want to be around in a while.


Calm down.
By TheFace on 9/19/2008 12:35:52 PM , Rating: 4
Nvidia isn't immune to the market, just like everyone else. They are just trimming down, and they'll be back in the next round. I wouldn't ever count them out, as people were doing for ATI just before they came out with the 48xx series. Nvidia is doing it's own diversification, with CUDA and physics processing. They will come out stronger than ever.

ATI just needs to take advantage of their situation right now and keep up the pace. Their last release was impressive. If they can have that much of an increase in the next iteration I would be pleasantly surprised.




Memory refresh
By crystal clear on 9/20/2008 5:19:58 AM , Rating: 1
Memory refresh-A news report in Digitimes

After all those initial denials but slowly & surely as time passes by, this report is turning out to be correct.

Here below is a repost of that report-

Nvidia said to be quitting chipset business; company denies claims

The sources claim that Nvidia will probably transfer the chipset team to work on GPU projects.

On the motherboard makers' side, some makers have already canceled upcoming high-end motherboard projects based on the nForce 7-series chipset.

The loss of its chipset business would have a significant impact on Nvidia's GPU business in the short-term.

Reception to the nForce 200 chip (BR04) which will enable SLI technology on Intel X58 motherboards has been lukewarm at best, with many makers saying they will not bother adding the chip on their boards.

This means Nvidia needs to find a way of licensing and enabling multi-GPU support on motherboards using Intel and/or AMD chipsets fast.

Otherwise it will have to cede the top-end of the graphics card market to AMD, which now has the benefit of Crossfire


Expect more negative announcements after those intial denials.

what next.....




RE: Memory refresh
By crystal clear on 9/20/2008 6:02:07 AM , Rating: 1
quote:
This means Nvidia needs to find a way of licensing and enabling multi-GPU support on motherboards using Intel and/or AMD chipsets fast.


Match this with this D.T. article-

NVIDIA will Enable SLI on Intel X58

http://www.dailytech.com/NVIDIA+will+Enable+SLI+on...

quote:
On the motherboard makers' side, some makers have already canceled upcoming high-end motherboard projects based on the nForce 7-series chipset.


DFI, Foxconn and Gigabyte have pulled the 790i boards from their product pages.

790i chipset products have "VANISHED"

Check up major vendor/reseller sites they are fast disappearing as they gradually update their product pages/ sites

Another article on D.T.-

Chipmaker Hydra's Stunning Work May Render CrossFire, SLI Obsolete

With the help of Intel Capital backing and over 50 patents, it has developed a technology that seems poised to rock the graphics industry.

You can bet Intel is out to knock both of them out of the competition.

Motheroard makers will take it up & incorp in their mobos in the future.

http://www.dailytech.com/Chipmaker+Hydras+Stunning...

It appears Nvidia has a very serious problem from notebooks to desktops & prefers NOT to talk about it

So these layoffs were expected & its the first in a series of layoffs,there are more on the planning board.


RE: Memory refresh
By Chiggs on 9/23/2008 5:35:06 PM , Rating: 2
Uh, I think you're forgetting one important factor:

quote:
Unfortunately there is one key catch with current technologies. Current operating systems like Windows Vista only support one graphics card driver simultaneously running. So until Microsoft allows AMD/ATI and NVIDIA drivers to coexist, a dual system remains entirely impossible and out of Lucid's hands, short of hacking the OS.


Hydra is pretty cool, but there will be significant roadblocks.


Tegra
By therealnickdanger on 9/19/2008 11:10:53 AM , Rating: 1
Tegra is probably the only product on NVIDIA's roadmap that excites me. I can't wait to have a mobile device like that to replace my Touch...




RE: Tegra
By Flunk on 9/19/2008 11:24:00 AM , Rating: 1
ditto ditto Dell Axim x51v.


Derm Microsoft marketing
By shaw on 9/19/2008 1:29:40 PM , Rating: 2
When I read the article I thought to myself "I didn't know nVidia had staff still working on the Xbox360, I thought it was all ATi."




the era of cross-cutting jobs?
By bongsi21 on 9/19/2008 11:20:31 PM , Rating: 2
I just notice a trend, when companies dosen't have a competition they sell their cards value well too high and now when they have competition they lower their products prices in order to meet market demand.

But is there justice when everything gets hot they tend to the old fashion way, Cross-cutting jobs.




a
By goku on 9/20/2008 1:18:42 PM , Rating: 2
Xbox 360 featuring nvidia graphics!




By jeromekwok on 9/21/2008 11:05:13 PM , Rating: 2
Lose people when you are losing the graphics war? Of course not.




Yaay! Less payroll! :)
By fibreoptik on 9/22/2008 11:47:52 AM , Rating: 2
Great news for shareholders! >:)




Don't count them out
By Smilin on 9/23/2008 2:25:55 PM , Rating: 2
nVidia has shown time and again that they have the ability to execute. They lay down a series of product designs that overlap on a 6,12,18 month rotation and deliver them. Their competitors at best win one round (plus maybe a tie) but never two back to back. This is really unheard of in such a high tech industry.

nVidia may have a flop from time to time (7 series chipset) or an unimpressive round of innovation (GeForce 4) but they keep going and going. If their competition has to wait on them to make a mistake to gain ground then nVidia is definately winning the war even when they lose an occasional battle.

I'm placing my money on nVidia over AMD in the short term. In the long term against intel we'll have to wait and see.




Nvidia is arrogant
By Beenthere on 9/19/08, Rating: -1
NVIDIA finally getting its just desserts
By rudolphna on 9/19/08, Rating: -1
RE: NVIDIA finally getting its just desserts
By piroroadkill on 9/19/2008 11:21:54 AM , Rating: 3
It is true that the vast majority of Vista crashes related to the nvidia drivers


RE: NVIDIA finally getting its just desserts
By slayerized on 9/19/2008 11:27:31 AM , Rating: 2
This sucks. Is this part of the "We're going to open a can of whoop-ass" exercise? I hope not!


By rudolphna on 9/19/2008 11:39:01 AM , Rating: 2
yeah, more like, "open a can of get our assus whooped" bad joke i know


RE: NVIDIA finally getting its just desserts
By MPE on 9/19/08, Rating: -1
By The0ne on 9/19/2008 12:48:10 PM , Rating: 2
Cheers to you. These are hard times for many people AND families. I've gone through with the during the first Bush and now the second. It's not easy. Video card woes and almost anything else doesn't matter when you are trying to earn enough to survive or support your family.


RE: NVIDIA finally getting its just desserts
By Spivonious on 9/19/08, Rating: 0
RE: NVIDIA finally getting its just desserts
By straycat74 on 9/19/2008 1:27:57 PM , Rating: 1
People are spoiled. They got used to spending too much on there credit cards, have too big of a mortgage they thought they would grow into.

The times we live in are more prosperous for more people than ever.

The economy is in recession because it is not growing fast enough!!!! If the news media was not in bed with the democrats and trying to get there guy in office, we would not hear the word recession. Here is a clue for the complainers, Congress has been controlled by Democrats for the past two years, who got in saying they were going to fix this mess.

Fannie Mae/Freddie Mac problems? Where did they get all of there influence from?

All Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008

Dodd, Christopher J $165,400
Obama, Barack $126,349 (Change?)
Kerry, John $111,000

http://www.opensecrets.org/news/2008/09/update-fan...


RE: NVIDIA finally getting its just desserts
By ats on 9/19/2008 3:00:48 PM , Rating: 1
Those numbers are bogus. When you factor in directors/officers/lobbyists for FM/FM McCain has received ~30% more.

And in other news, Company and its Employees donate to political campaign! The terror, the horror, the scandal!

But then again McCain is in his element with corrupt and bankrupt finance types so..


By straycat74 on 9/19/2008 6:10:58 PM , Rating: 2
Site your source please


By straycat74 on 9/19/2008 6:13:06 PM , Rating: 2
And then factor in McCains years in congress compared to Obama.


RE: NVIDIA finally getting its just desserts
By sxr7171 on 9/22/2008 12:50:43 AM , Rating: 1
It seems like many do not know the definition of "recession" both in general terms and in economic terms: 2 consecutive quarters of negative growth. But what can you do? They'll rate you down even when they can't understand what you wrote.


By Spivonious on 9/22/2008 9:27:55 AM , Rating: 2
Thanks for the support. I forget that Dailytech is filled with 13 year-olds sometimes.


RE: NVIDIA finally getting its just desserts
By rudolphna on 9/19/08, Rating: -1
RE: NVIDIA finally getting its just desserts
By allnighter on 9/19/2008 3:42:24 PM , Rating: 3
wow, just wow. I don't believe in harsh language over the internet but you bro are a retard.
Losing a job is a miserable event for anyone. Your argument is stupid. You probably haven't experienced such a thing yourself but with the kind of intellect you're displaying here, I'd say you don't have to worry about anything. There will always be some kind of burger flipping work to be found.


By rudolphna on 9/19/2008 7:14:20 PM , Rating: 2
Im not denying that its horrible that ANYONe had to lose their jobs. I feel soryr for them, but we all know it happens, and there is little we can do about it. Ive heard people say how they dont care if AMD, Ford, GM go out of buisness. They dont think about the hundreds of thousands of people that will lose their jobs, if such a thing happened. I feel for them, but in the grand scheme of things, we should be glad it wasnt more, like Dell, HP are laying off.


By straycat74 on 9/19/2008 1:59:59 PM , Rating: 2
You could think of it as 360 people to get new exciting jobs!


RE: NVIDIA finally getting its just desserts
By Fnoob on 9/19/08, Rating: 0
RE: NVIDIA finally getting its just desserts
By rudolphna on 9/19/2008 3:24:31 PM , Rating: 2
they were BFG, I got tired of having my system be unusuabl,e for a week, and having to pay shipping.


By Fnoob on 9/19/2008 3:37:04 PM , Rating: 2
Haven't had to use their warranty yet... that's a bummer to hear that they don't send out an RMA and cover shipping. The way my RROD XB360 was handled was impressive; all returns should be handled so well.

Do you have a quality powersupply rated to handle everything you are using? Stable incoming power in your area? Adequate case cooling? After frying multiple cards, I would begin to question some other variable in your setup / environment.

Better luck to you in the future.


By StevoLincolnite on 9/20/2008 2:48:47 AM , Rating: 2
If nVidia is as bad as you say, then why do I have a Riva 128 that has been working since the almost dawn of 3D acceleration?

Heck, every card I have ever owned has *never* broken down, not sure if it's because of the systems I use them in, or perhaps just luck.

But hardware wise nVidia is as Good as ATI.

Nvidia had the Geforce FX let-down, ATI had the 2900 series let down.

What it should come down to is Price/Performance.

My Main desktop rig has Crossfire 4850's with a PCI Geforce 6200 for multi-monitors. - Works like a charm, seems the Graphics cards don't try and kill each other with hate like I see some people do for using a certain brand.


By Spuke on 9/19/2008 6:56:20 PM , Rating: 2
I've had both cards and both have had their fair share of problems but none were unfixable. I am currently running an ATI 4850 and had the supposedly unfixable ATI2DVAG problem. Fixed that too. No one's perfect.


RE: NVIDIA finally getting its just desserts
By JustTom on 9/20/2008 1:15:42 AM , Rating: 2
So you have had nothing but problems with ATI cards and nothing but good results from NVIDIA? Why then have you bought as many ATI cards?


By Fnoob on 9/20/2008 10:08:29 AM , Rating: 2
Sorry, I misspoke. I have had no problems with either brand. I buy whichever card offers the best bang for the buck at any given time. I have been equally annoyed with both firms driver packages from time to time.

The only complaint I have with the 8800GT is the noise - it's a loud mofo. I think my next will be the 4870x2.


By Fnoob on 9/20/2008 10:11:57 AM , Rating: 2
Sorry, I misspoke. I have had no problems with either brand. I buy whichever card offers the best bang for the buck at any given time. I have been equally annoyed with both firms driver packages from time to time.

The only complaint I have with the 8800GT is the noise - it's a loud mofo. I think my next will be the 4870x2, or whatever comes along to top that one, I'm in no hurry.


360?
By ebakke on 9/19/08, Rating: -1
RE: 360?
By MPE on 9/19/2008 12:22:48 PM , Rating: 3
According to NYTimes and other mainstream outlets - it is. Not to say it may not be important to you. I am just saying that others do see it as.


RE: 360?
By ebakke on 9/19/08, Rating: 0
RE: 360?
By CloudFire on 9/20/2008 1:48:45 AM , Rating: 2
then don't read American "news". there's always the X in the upper right corner or your browser

for the rest of us, we might actually care a little bit.


RE: 360?
By xti on 9/19/2008 12:58:11 PM , Rating: 4
if it is 6.5% of their workforce, id say yeah...and its a sign of things...just like at AMD.


RE: 360?
By gaakf on 9/20/2008 12:16:33 AM , Rating: 2
The number is so ironic that I found it humorous. "Nvidia cut 360 people to 'turn things around'" - Classic.


RE: 360?
By Totally on 9/20/2008 1:01:27 AM , Rating: 4
wouldn't it be one 180, 360 degrees they are still going the same direction.


RE: 360?
By Methusela on 9/20/2008 2:34:39 AM , Rating: 2
Pretty sure you fail miserably at irony detection.


RE: 360?
By comc49 on 9/20/2008 5:15:38 PM , Rating: 2
that's y it's ironic


RE: 360?
By sxr7171 on 9/22/2008 12:47:29 AM , Rating: 2
I thought the same thing. They messed with the wrong people.


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