Nvidia issued a warning about these numbers in the last few hours. Greens revealed that the quarter ending July 31 was well below expectations. Earlier in the past few months, Nvidia estimated second-quarter revenue at $8.10 billion, but it was revised down 21 percent to $6.70 billion. Revenues for the company’s gaming division were particularly hard hit, dropping 33.33% year-over-year from $3.06 billion to a projected $2.04 billion. These figures obviously echo the many other communications from companies in the gaming sector experiencing a sharp downturn in the market after two years of euphoria. The preliminary earnings warning is never good news for employees when your company is publicly traded. In most cases, employees know that they are the adjustment variable that must be pushed to satisfy the stock market goddess. But apparently, Nvidia wants to do otherwise.
Nvidia: CEO Jensen Huang explains and reassures
After these announcements, Jensen Huang communicated with his employees through an email. On the explanations of the situation, the CEO blamed the decline in demand and excess inventory within the ecosystem to explain its bad quarter. An ubiquitous moment compared to the past two years where the lack of stock was the number 1 problem. But the boss especially wanted to reassure his staff by stating, among other things: Are we going to lay off? No. Instead, we’ve given raises to take care of your families, because you’re all facing staggering inflation. A statement quickly countered with a warning that future layoffs were something that could not be ruled out. The CEO also talked about making Nvidia even “faster, lighter and more agile”. In short, so far so good, but the end of the year will be crucial for the serenity of employees.