Nvidia is a global technology company that develops and manufactures powerful graphics processing units (GPUs) and related software and hardware solutions. The company’s GPUs are widely used in various industries, including gaming, professional visualization, data centres, artificial intelligence (AI), and self-driving vehicles. NVIDIA Layoffs 2024?
Despite the layoff trend, Nvidia is among those companies that continue to hire. The inclusion of Nvidia on this list is hardly surprising. The chipmaker’s (NVDA) shares continue to provide stockholders with excellent returns. Investors and job seekers might look at these rising stocks that have avoided layoffs. NVDA’s sales and earnings have significantly increased, making job layoffs unnecessary. In this article, we will learn more about Nvidia.
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About the company
1993 Jensen Huang, Chris Malachowsky, and Curtis Priem established Nvidia. Initially, Nvidia focused on developing graphics cards for the gaming industry. Over time, their expertise grew to include GPUs for professional graphics and high-performance computation. They are now concentrating on the development of artificial intelligence technology.
The company is headquartered in Santa Clara, California, and is incorporated in Delaware. As of 2024, the company employed more than 29,600 workers.
In February 2024, it was stated that Nvidia was the “hot employer” in Silicon Valley. It was because it provided fascinating work and competitive pay at a time when other tech companies were downsizing. In 2023, half of Nvidia’s employees earned more than $228,000.
Nvidia’s CEO expects no layoffs!
Nvidia CEO Jensen Huang assured staff in 2023 that there would be no layoffs, even if the business failed its target. According to the company’s preliminary financial report for the second quarter of 2023, revenue fell at the time. Insider reported in August 2023, citing an email addressed to more than 22,000 employees.
“Therefore, what does this imply for us? Is there a layoff?” No. “Instead, we have granted raises to help you care for your families as you all face sky-high inflation,” he added.
He further asserted that the business will improve in the future and will maintain “investments at current levels.” As part of our culture, we will work together exceptionally well and take advantage of any chance to reuse and leverage. “We will identify and remove all wasted energy, process, and material,” he wrote.
Nvidia managers are nearing retirement
According to the learning, the company’s CEO has been hesitant to fire employees, with the
The most recent large-scale round of layoffs occurred in 2008 during the economic crisis. During the 2022–2023 layoff season, Intel slashed hundreds of positions. However, Nvidia kept all its employees on board, providing lower salaries and more prominent stock awards.
The problem is that Nvidia’s stock has risen by over 1,400% over the last five years and will be approximately 240% in 2023. This is due to a massive jump in chip orders for new AI features.
Nvidia has gained more from artificial intelligence than rival chipmakers such as AMD and Intel. Also, long-term employees think this is an opportunity to stockpile shares. By watching them increase, employees leave with little motivation to work.
The business also plans to adopt a hands-off management style. Thus making it difficult for executives to identify and handle issues such as complacency.
Huang has urged employees to take responsibility for their work by perceiving themselves as their CEO. Nvidia has declined to respond.
Nvidia is still hiring amidst the layoff trend
Job layoffs have been an ongoing issue in recent years, but plenty of companies are still hiring. Of course, the COVID-19 epidemic caused a severe downturn in several industries. But when nations dealt with the pandemic, another issue arose: inflation.
In the summer of 2022, inflation rose above 9% in the United States, prompting the Federal Reserve to hike interest rates 11 times. An increased federal funds rate led to global macroeconomic uncertainty. Businesses, facing uncertain times and decreasing growth, have slashed thousands of jobs. Since 2022, major tech companies, including Google, Meta, and Amazon, have cut thousands of jobs.
Still, many companies are hiring. Despite the macroeconomic instability, they have boosted top-line growth and profitability while avoiding massive layoffs. It’s not surprising that Nvidia is on this list.
Nvidia’s Q4 earnings release exceeded Wall Street projections. NVDA stock is now up more than 72% year to date.
The renowned chipmaker’s development is linked to its popularity in chip design for training large-language models for artificial intelligence. Nvidia’s H100 chip is in popular demand around the world. That means the chipmaker will need a stable staff to meet demand.
Nvidia’s Q4 earnings report showed revenues of $22.1 billion, up 22% sequentially and 265% year over year. Overall revenue climbed by 126% year over year. GAAP earnings per share also increased by an incredible 586% to $11.93. This means that the business is earning more net income than ever before. Also, employment layoffs are not on the horizon.
Conclusion
NVIDIA climbed to third place in Fortune magazine! It is listed as a great place to work in the most recent ranking of America’s 100 Best Companies to Work For. It marks the company’s eighth consecutive year and highest ranking on the list. This was released on April 4, 2024, with over a thousand companies competing for a place. NVIDIA placed sixth last year.
Many IT businesses faced a challenging year in 2023, with an uncertain economy and several of the largest employers cutting off thousands of people. However, NVIDIA focused on cost management, promoting innovation, and providing unique employee perks and compensation.
Fortune states, “NVIDIA continues its amazing streak of 15 years without any layoffs. It happened even as the wider tech sector cut tens of thousands of jobs.” NVIDIA was also recognized for its “flat structure.” It enables staff to address problems swiftly and together through projects.
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