Nvidia to lay off 360 workers

It's game over for around 6.5 percent of Nvidia's global workforce, as 'business reality' trumps virtual reality

Nvidia has announced it is to shed around 360 of its staff, approximately 6.5 percent of the graphics hardware company's global workforce.

The cuts were announced on Thursday and are expected to be completed by 26 October. Nvidia has promised severance packages, counselling and "job-placement services", according to a statement.

"Our action today is difficult, but necessary considering current business realities. Despite our reduction, we will continue to invest in selective high-growth opportunities like our revolutionary CUDA parallel computing technology and our Tegra mobile single-chip computer," said the company's president, Jen-Hsun Huang, in the statement. "We are taking fast action to enhance our competitive position and restore our financial performance."

Nvidia said in the statement that it expected to rack up around $7m-£10m (£3.8m-£5.5m) in "restructuring-related charges", which will comprise severance and related expenses.

The company was recently hit with costs of at least £80m for having to recall and replace faulty graphics-processing chips, an event that has led to a class-action lawsuit by its customers.