Nvidia announce plans to reduce workforce by 6.5%
NVIDIA Corporation (Nasdaq: NVDA) today announced a workforce reduction to allow for continued investment in strategic growth areas. As a result, NVIDIA expects to eliminate approximately 360 positions worldwide, or about 6.5 percent of the Company?s global workforce. The reduction is expected to be completed by the end of the third quarter of fiscal 2009 ending October 26, 2008. NVIDIA will provide employees affected by this reduction with severance packages, counseling, and job placement services.
“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,” said Jen-Hsun Huang, president and CEO of NVIDIA. “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.”
The Company expects to record restructuring-related charges of approximately $7 million to $10 million in the third quarter of fiscal 2009 in connection with the reduction. These pre-tax charges are comprised of severance and related expenses and are expected to be charged primarily against NVIDIA?s operating expenses.