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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.


"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007













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