Shulou(Shulou.com)11/24 Report--

According to news on the evening of August 10, Beijing time, Nvidia CEO Huang Renxun (Jensen Huang) recently assured more than 22000 employees that Nvidia will not lay off staff, at least in the short term. Although the company issued a preliminary earnings warning earlier, it said second-quarter revenue would be lower than previously expected.

Nvidia warned on Monday that second-quarter revenue was expected to be $6.7 billion, down 19 per cent from a month earlier and up 3 per cent from a year earlier because of the downturn in the gaming business. The revenue fell short of the $8.1 billion expected by Nvidia and Wall Street analysts.

In response, Huang Renxun said in an email to employees that the second-quarter results were "significantly lower than expected", mainly because of the slowdown in the gaming business. But he also assured employees that Nvidia's fundamentals are still strong and demand is still strong.

"what does this mean for us? will we lay off staff? no, I won't. Instead, we have given you a raise to take care of your families, because all of you are facing severe inflation."

It is not clear whether the pay increase referred to by Huang Renxun is a new initiative or a more general discussion of the company's pay practices. Of course, Huang Renxun did not rule out future layoffs in his email.

Invida declined to comment.

Huang Renxun also said in an email that Nvidia will take advantage of the current opportunity to make the company better and more efficient. Moreover, Nvidia will continue to maintain the "current level of investment". "We will cooperate as much as possible, which is a sign of our corporate culture; we will find every opportunity we can take advantage of and reuse it; we will find and eliminate all wasted time, processes and materials," he said. Seize this opportunity to make Nvidia faster, leaner and more flexible. "

At a time when Nvidia has promised not to cut jobs, at least in the short term, tech peers such as Oracle and Robinhood have already done so. Other companies have also "tightened their belts" in different ways, including canceling the hiring of new employees.

At the end of the email, Huang Renxun urged Nvidia employees to turn their energies to the company's investments in cutting-edge areas such as metasmology and artificial intelligence. These areas will drive the company's future business growth, he said. Huang Renxun said: "Let us maximize our vigilance and flexibility, drive at full speed, and meet the challenges ahead while continuing to do our current work."

Nvidia expects revenue from the gaming business to reach $2.04 billion in the second quarter, down 44 per cent from a month earlier and 33 per cent from a year earlier. By contrast, data center business revenue will reach $3.81 billion, up 1 per cent month-on-month and 61 per cent year-on-year.

Just a few days ago, Intel and Sony also cut their annual earnings forecasts, mainly worried about falling demand. Today, consumers are becoming more cautious about buying non-essential items such as laptops and video game consoles, leading to some weakness in the gaming industry, which is thought to be able to withstand the economic downturn.

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