Nvidia announces hundreds of job losses

Chip firm says workforce reductions will let it focus on key development

Nvidia CEO Jen-Hsun Huang: staff cuts are difficult but necessary considering current business realities

Nvidia has announced that it is cutting jobs to enable it to invest in strategic growth areas.

The company said that it expected to reduce its workforce by about 6.5 per cent, or roughly 360 people.

Nvidia has some 5,000 employees worldwide, and has offices in England, Finland, France, China, Russia, Japan and Korea among others.

"Our action today is difficult but necessary considering current business realities," said Jen-Hsun Huang, president and chief executive at Nvidia.

"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.

"We are taking fast action to enhance our competitive position and restore our financial performance."

The reduction in workforce is expected to be completed by the end of October. Nvidia said that it would offer redundant employees severance packages, counselling and job placement services.