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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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RE: NVIDIA finally getting its just desserts
By Spivonious on 9/19/2008 1:05:05 PM , Rating: 0
We're not in a recession. The economy is still growing, just much more slowly than in recent years.

People losing their jobs is sad, but that's business. Would you rather they didn't lose their jobs and nVidia went bankrupt? Now you have 4,000 people without jobs.

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

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.

"I modded down, down, down, and the flames went higher." -- Sven Olsen

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