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Nvidia's CEO gives its employees a raise instead of booting anyone out, in spite of a poor Q2 performance, according to a leaked email.
In what is claimed to be a leaked company email, Nvidia CEO Jensen Huang promised employees that they will receive a raise to help everyone tide through the global inflation. This is in spite of the company facing significantly lower earnings for the second quarter of the year. The CEO also promised that Nvidia will not be laying anyone off, at least in the immediate future.
The uplifting news came after preliminary reports showed that Nvidia fell short by $1.4 billion from its expected $8.1 billion revenue for Q2 2022. The company noted that its gaming division's revenue fell by 44% year-to-year.
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To address the underperformance without having to lay off anyone, Huang told employees through the email that Nvidia would “find and eliminate all waste of time, processes and materials and improve upon them. Take this opportunity to make Nvidia faster, leaner, and more agile.”
The gaming industry, similar to other industries in tech, has been notorious for crunch time and layoffs, often blaming underperformance or waste on overstaffing. Nvidia's purported solutions to underperformance, hence, are refreshing. Hopefully, this would actually lead to better performance in their employees, leading to better performance moving forward, and inspiring other companies to do the same.
Nvidia will probably reveal the next generation of their graphics cards, the 40- series, in the near future. Depending on its performance and how it compares to the graphics card of its leading competitor – AMD, we might be able to see Nvidia bounce back from its poor performance this year. Either way, Nvidia remains to be one of the biggest and most-respected chip manufacturers in the industry today, powering gaming consoles and computers of gamers all around the globe.
