NVIDIA Announces Workforce Reduction
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SANTA CLARA, CA—SEPTEMBER 18, 2008—NVIDIA Corporation (Nasdaq: NVDA) today announced a workforce reduction to allow for continued investment in strategic growth areas. As a result, NVIDIA expects to eliminate approximately 360 positions worldwide, or about 6.5 percent of the Company’s global workforce. The reduction is expected to be completed by the end of the third quarter of fiscal 2009 ending October 26, 2008. NVIDIA will provide employees affected by this reduction with severance packages, counseling, and job placement services.
"Our action today is difficult, but necessary considering current business realities. Despite our reduction, we will continue to invest in selective high-growth opportunities like our revolutionary CUDA parallel computing technology and our Tegra mobile single-chip computer," said Jen-Hsun Huang, president and CEO of NVIDIA. "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."
The Company expects to record restructuring-related charges of approximately $7 million to $10 million in the third quarter of fiscal 2009 in connection with the reduction. These pre-tax charges are comprised of severance and related expenses and are expected to be charged primarily against NVIDIA’s operating expenses.
Certain statements in this press release including, but not limited to, statements as to: timing and execution of the workforce reduction; number of positions impacted worldwide; expected charges and costs related to the workforce reduction; impact of the workforce reduction on our future financial results; use of potential costs savings and future growth are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: our ability to execute the workforce reduction; negative consequences from our workforce reduction such as disruptions to our business; our ability to control costs; unexpected changes in the market place; adoption of competitor technologies instead of our technologies; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission including its Form 10-Q for the fiscal period ended July 27, 2008. Copies of reports filed with the SEC are posted on our website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
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