Sunday, September 21, 2008

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Nvidia To Layoff 360, Cutting Staff 6.5%

Forwarded by Venkat
Nvidia (NVDA) this afternoon announced that it will cut its staff by 6.5%, or about 360 people, by the end of its fiscal third quarter ending in October. The graphics chip company said the cuts will be across the board, affecting all departments and geographies. The company said it will take a charge in the October quarter of $7 million to $10 million to cover costs related to the layoffs.

In a statement, CEO Jen-Hsun Huang says the move was “difficult, but necessary considering current business realities.” Huang says the company will continue invest in “selective high-growth opportunities like our revolutionary CUDA parallel computing technology and our Tegra mobile single-chip computer.”

Huang added that the company is “taking fast action to enhance our competitive position and restore our financial performance.”

Nvidia shares have been struggling mightily since it missed guidance for the July quarter.

In today’s regular session, NVDA jumped 98 cents, or 9.8%, to $10.98; the stock is now up $1.73, or 18.6%, in the last three sessions. After hours, the stock is down 3 cents.


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