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Graphics
Nvidia goes to save mode
Must save 30 million per quarter
Jensen, and the company's CFO Marvin Burkett have told investors that as of this quarter Nvidia is in save mode. Since the operating cost of this graphics company is 300 million, so they need to cut some 10 percent, roughly 30 million per quarter, in order to continue with their "innovation".
Nvidia has a plan to save almost 30 million per quarter and survive until the economy catches its breath again. Nvidia keeps forgetting that they live from the gaming market and that gamers are their best hope for a good future, while these CUDA computing guys are still in a distant future.
Nvidia is already cutting non-necessary flights, some employees and executives will get a salary cut and our understanding is that most of Nvidia family will feel the bad economy, one way or another.
At this time, there are no any indications of layoffs, but if the economy continues to be bad, anything is possible.
The good thing for European employees of Nvidia is that the USA based company cannot simply cut the salaries of their employees, but Nvidia can and probably will do it in USA and Asia. Nvidia is putting a lot of effort into Ion and we all know that Ion makes Intel looks bad, and no one really likes that.