Nvidia slows hiring after warning over weaker gaming sales

midian182

Posts: 8,023   +88
Staff member
What just happened? After forecasting a decline in GPU sales for graphics cards and consoles in the current quarter, Nvidia has become the latest tech giant to report a slowdown in hiring. The pessimistic outlook saw shares fall 6.7% in extended trading, despite the company beating analysts' expectations for revenue and earnings in Q1

Nvidia's revenue was up 46% year-on-year during the last quarter to $8.29 billion. It included a record amount of revenue from its data center business, which saw 83% YoY and 15% QoQ rises. But the company's future outlook wasn't so positive: it predicts a second-quarter revenue of $8.10 billion (+/- 2%), lower than analysts' average expectation of $8.45 billion. "Overall, the gaming market is slowing," said CEO Jensen Huang.

The slowdown is being blamed on factors impacting much of the global economy: Covid lockdowns in China and the Russia/Ukraine war, both of which are predicted to negatively impact Nvidia's bottom line to the tune of $500 million. Chief Financial Officer Colette Kress said (via Reuters) that the amount included about $400 million lost in gaming sales in China and Russia and another $100 million lost in data center sales in Russia. Inflation and rising energy prices are playing a part, too.

The New Indian Express reports that the lower-than-expected forecast will see Nvidia rein in its hiring to lessen the impact. Managers have been instructed via internal Slack messages only to make offers to the top 10% of interviewees. The messages reportedly added that hiring managers interviewing "diversity candidates" should "proceed as usual."

An Nvidia spokesperson confirmed the change in hiring policy to Protocol, adding that it was "to focus our budget on taking care of existing employees as inflation persists."

Nvidia has a busy second half of the year coming up with the launch of its RTX 4000 (Lovelace) graphics cards, but that hasn't stopped it from joining the likes of Lyft, Snap, Uber, Meta, Salesforce, and Coinbase in decreasing its rate and number of hires.

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Uncle Al

Posts: 8,930   +7,895
"Nvidia slows hiring after warning over weaker gaming sales"

Pretty much a typical industry move with growth slows. Nothing new here ......
 

defaultluser

Posts: 435   +348
So how bad will the inventory hit be this time? there were over 1 million unsold 1060s / 1070s the last time round!

I'll take a clearance 3070 for $350, than you yery much!
 

eforce

Posts: 1,011   +1,458
I wonder if continued production of older cards will be stopped due to declining demand.
 

antiproduct

Posts: 236   +300
So they screwed gamers over by selling at such high prices and selling lots to crypto miners, then crypto crashes and suddenly it's gamers who aren't buying their cards? Uh huh. I'm looking forward to graphics cards coming back down in price now, which I'm sure the manufacturers aren't happy about either.

To graphics card companies, sorry about your profit margins, but you made gamers suck it for years, now it's your turn to suck it for turning your back on gamers. I hope crypto dies so this won't be a problem in again in a year or two.
 

Burty117

Posts: 4,504   +2,723
Now it's your turn to suck it for turning your back on gamers.
Oh they won't be "sucking it". They made serious money from gamers before Crypto ever came onto the scene. They've used Crypto as an excuse to ramp up prices and leave them there. Even if the 3060Ti was selling for £250 (£100 below MSRP) they will be making plenty of money still.

I assume many gamers are like you and me and just waiting for the prices to come back down to earth. Otherwise they'll remain way to high.
 

NeoMorpheus

Posts: 1,150   +2,316
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NeoMorpheus

Posts: 1,150   +2,316
Ah…the ‚gaming‘ market is slowing down. Something with *ing is certainly slowing down.

Interestingly, there is zero mention of crypto.
Wait, are you really expecting a honest response from Nvidia? :cool:

The company that have being shafting their own customers over and over, mostly because they know how dumb and loyal they are?
 

noel24

Posts: 806   +1,066
Well suck It up Jenny.
In EU, your cards right now are like 20% more expensive per fps than AMD, so even DLSS doesn't save You, as You can target for the same fps on AMD without any upsampling, and with FSR 2.0 on the way, It will be even worse for You.
And resellers are sitting on a ton of Your overpriced cards, while AMD sells for MSRP. So all that bullsh*t about high prices of litography or components, You can stuff where the Sun doesn't shine.
 

Aceseven

Posts: 315   +398
Oh noes, instead of a bazillion dollars they'll only make a bajillion, thoughts n prayers nvidia, thoughts n prayers.
 

alexnode

Posts: 86   +28
I guess because GPUs are not money printers after all ... Nvidia and ...AMD have to sell GPUs to gamers. And gamers don't think that £1200 is good value. Wait until the machine learning "AI" boom bursts, you see ... things like marketplace and data searches and suggestions are deteriorating rapidly, curated marketplaces gain traction and sales.
 
From the looks of current GPU prices instead of upgrading aging rig I seriously consider Xbox S that is in it's entirety costs fraction of a price nVidia asks for their mid range GPUs. As for forking out Fort Knox price of high end GPU that costs more than all the rest of the rig combined altogether, no.
 

Starscream07

Posts: 28   +7
From the looks of current GPU prices instead of upgrading aging rig I seriously consider Xbox S that is in it's entirety costs fraction of a price nVidia asks for their mid range GPUs. As for forking out Fort Knox price of high end GPU that costs more than all the rest of the rig combined altogether, no.
Definitely this. I grew up playing on the PC. My last card was a 1060 that I bought for $220. These new cards make me sick. I got my first console (ps4 pro) and I'm more than happy to continue on it till there's a Ps5 pro. I coupled a $400 console with a $1000 tv and the experience has been way better than anything I had on pc. Lack of good games since Covid and the ps5 still lacking real next gen is a bummer. Although I want to upgrade my rig, lack of games and greedy pricing is unattractive to me.