NVIDIA Cuts 6.5% of Global Workforce

Just earlier this year, NVIDIA was riding high, but things sure have changed. The company is unable to catch any sort of a break, what with two different class-action suits against them at the same time for their faulty mobile chips, and the fact that their latest GPU launch was immediately dampened by ATI’s surprising performance-packed HD 4000 series.

Well now the company has announced a cut of 360 employees globally, some which will affect those in North America. The number might not seem like a big deal, but given that NVIDIA has just under 5,000 employees, it’s a rather high percentage. CEO Jen-Hsun Huang notes that despite the termination of all the employees, the company will continue to invest in all of their upcoming technologies, including CUDA and Tegra – technologies which we’ve covered many times before.

Although the booting of employees is never a good thing, NVIDIA seems to be treating their dismissed staffers well, with full severance packages, counseling and job placement support. NVIDIA might be in a tough situation lately, but they’re sure to turn back around soon enough. Need proof? AMD did the same thing not long ago!

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.