News Nvidia to cut workforce by 6.5 percent

http://www.bit-tech.net/news/2008/09/18/nvidia-cuts-workforce-by-6-5-percent/1

We have learned that Nvidia will cut its workforce by 6.5 percent before the end of the third quarter, following dramatic changes to its business outlook.

 

This doesn't come as a surprise though... they took that 200 million $ hit to cover the GPU issues this year. Two lawsuits are coming up, and some say the $200 mill isn't enough to cover the problem in its entirety. Job cuts were to be expected. But who isn't cutting jobs eh? Didn't HP cut 24,000 jobs a few days ago? That's the size of laying off a medium sized town.

 

Dilbert anyone? If anything goes wrong... just re-org.
But yea, I agree with the above. FIrst reaction to bad sales or other problems is job cuts. Or, with German T-Com, they fire 23000 people to satisfy their shareholders....

 

4800 family have anything to do with this?

 

One company cannot dominate for 2 years at least. NVIDIA was the winners for last two years.Amd ATI came strong. Same will be true for intel.Now the Intel is the CPU winners.Amd is the 2nd . All of the sudden that can change with a one great cpu architecture from AMD.
But Nvidia did wronge with larger 65nm gpu inventory and warranty claims. This is not about competition. It is strategically and technical failure from Nvidia.

 

From what I've heard,, both officially and unofficially, it's nothing to do with the warranty claims... But it is related to how Nvidia underestimated AMD's ability to fight back. It's always sad when a company has to lay part of its workforce off, but I hope the 'blips' we've seen from Nvidia over the past 12 months help to refocus the company. Competition is important and we wouldn't have had the 4800 series if it wasn't for Nvidia, IMO.

 

You're telling me. If it weren't for competition, we'd all still be using Pentium 4's. *shudder*

 

It's sad that the result of competition often results in job cut's.

One thing which I always find worrying is how short sighted the community can be. When Nvidia launched the 8800GTX it obliterated the competition, and continued to do so for two years. At this point it's probably the best GPU ever to hit the market. ATI had no response, and have only just clawed their way back into the fray with two incredible GPU's. During this time ATI were slated....BIG TIME!

Nvidia still hold the (legal....x2 not allowed) single fastest GPU crown. I believe that their domination over the last two years caused a lapse which has resulted in poor development for their mobile GPU range. Other issues with the 8800 series are not helping them.

When Nvidia were at the top ATI get's slammed by the community and because of two very good mid-range cards now it's Nvidia's turn to be dragged through the dirt? I really don’t get this mentality?

Don’t read this as the opinion of a fanboy since I have both 8800 and 4870's, for me it's what ever does the job best. If ATI had been capable of competing during the 8800 era then we would probably have better GPU's and Nvidia would not be in this mess, a lack of competition causes complacency.

Nvidia will fix their problems for sure, do you really think they would make it to the top and then just give up......NAH!

Still today people claim exclusive allegiance (Fanboy) Intel/Nvidia/AMD/ATI, I find this strange since as a consumer I'm interested in whatever gives the best performance....irrespective of brand!

Friday morning rant over

 

It looks like AMD chose the perfect time to release the 4000series, with all there lawsuits n' such.

 

Well basically, Nvidia got arrogant and making not any kind of 'hush hush' those two years to come up with something much better. Noooooohh... they just profited for two whole years from one card, before amdti woke them up out of their dull little nap with better cheaper options like a rabbit out of the hat.

Nvidia's is to blame here, normally they suppose to come out every year with a better card but because the last two years they had no competition what so ever, they did nothing, but laying on the beach with a cocktail and a mountain of 8800 clones behind them. And laughing behind their sunglasses about some minor faulty stuff in the 8800 hardware. Aah so be it, the Jen-Hsun is shinning.

I don't get it anyway, how can they cut jobs if they have sold so many hardware the last two years, there was no competition at all. Hell everybody I know has a 8800 videocard, be it a GT/GTX/GTS/8600/8900 etc. What did Nvidia do with all the proffits?

 

See your comment about beaches and cocktails

 

Good for us, not for people without job tho...

 

It is not good for anybody, and is a symptom of the MBA Groupthink that pervades corporate decision making. They are all playing from the same playbook and it doesn't work.

Corporate Capitalism is undergoing a collapse and are going to have to find new ways of doing business or go out of business.

Yours in Open Plasma,
Star*Dagger

 

Good for who? Nobody get benefited when competition is going down