19-09-2008
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| Member | | Join Date: Aug 2008
Posts: 46
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| NVIDIA to lay Off 6.5% of Its Employees
Graphics chip developer Nvidia plans to lay off 6.5 percent of its workforce, with around 360 people worldwide expected to lose their jobs by the end of October.
About 360 people worldwide will lose their jobs by the end of October, Nvidia said. The Santa Clara, California, company plans to offer severance, counseling and job placement services for the affected workers.
NVIDIA's business outlook underwent through dramatic changes during the second quarter of this year, and the job cuts are the consequence. The employees that will be made redundant come from all business units, and all regions, meaning that we should witness some internal reshuffling after that. The green company noted that it is still making significant progress in its main interest areas like the CUDA parallel computing technology and the Tegra system on a chip. The graphics cards manufacturer plans to continue investing in growth areas.
In a statement, Nvidia said the layoffs will allow it to continue to invest in strategic growth areas, including its CUDA (Computer Unified Device Architecture) parallel computing technology and its Tegra mobile single-chip computer. The move will also help the company become more competitive and boost its financial performance, it said in the statement.
Besides the bad quarter, NVIDIA also had to cover warranty repairs for the notebook GPUs experiencing higher-than-expected failure rates in July, totaling a $196 million charge. Some of the shareholders filed suits against the company saying that they should have been informed on the faulty chips.
Nvidia also faces a lawsuit that was filed in California alleging that it hid a series of defects in its chips that caused the chips to fail.
The company did not indicate that the layoffs were related to the recent costs associated with replacing the bad chips.  |
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