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Nvidia To Slash 6.5% of Workforce

Nvidia said late Thursday afternoon that it will eliminate roughly 360 jobs, or 6.5% of the company's workforce. In a statement, Nvidia Chief Executive Jen-Hsun Huang described the cuts as "difficult, but necessary." The Santa Clara, Calif.-based company said it will incur charges of roughly $7 millon to $10 million in severance and related expenses in the third quarter of fiscal 2009.

Part of the problem: Nvidia is a so-called fabless semiconductor manufacturer, relying on foundries such as Taiwan Semiconductor Manufacturing Company to create its chips. That means it doesn't have to spend billions building chip fabs, an expense that has weighed heavily on Nvidia rival AMD. But because AMD and Intel spend billions on their own factories, investors fret that the companies will be able to more easily crank out chips that are faster and use less power.

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Posted by | Fri, Sep 19, 2008 - 11:17 AM