NVIDIA Corporation (NASDAQ: NVDA) has not been without its share of problems. It has just announced that it will implement a headcount reduction of approximately 360 positions worldwide. This translates to about 6.5% of its internal global workforce.
The company expects the move to be completed by the end of the quarterending October 26, 2008 and it expects to record restructuring chargesof roughly $7 to $10 million as a result of severance and relatedemployee termination costs. The company needs to cut off the employeesresponsible for the failure of its last chips and the ones who decidedto keep it private for so long about the returns and recalls.
Shares rose 8.9% to $10.89 today and are up almost 1% at $10.99 afterthe news. Wall Street likes to see layoffs, but this doesn’t exactlygive you all the confidence in the world that the company is going tobe in any major growth mode any time soon.
Jon C. Ogg
September 18, 2008
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.