Regrouping
Graphics giant NVIDIA has announced it will be cutting approximately 360 jobs, around 6.5 percent of the workforce, by the end of October this year.
The reason given for this is "to allow for continued investment in strategic growth areas", which appears to mean cash flow problems.
"Our action today is difficult, but necessary considering current business realities," said boss Jen-Hsun Huang. "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."
NVIDIA has had to contend with a number of "challenges" this year. On top of the challenging economic climate everyone finds themselves in, NVIDIA has had to contend with a resurgent AMD/ATI and the, as yet unresolved, repercussions of manufacturing defects in a number of its products.
The launch of the ATI Radeon HD 4000 generation of graphics cards forced NVIDIA to lower the prices of its own, newly launched, GeForce GTX 200 generation of GPUs. This move necessitated the payment of considerable compensation to the channel to account for the price reductions.
