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.