Nvidia will be the latest company to join a list of tech firms that will implement slowdowns in hiring. The chipmaker arrived at this decision amid the challenges in the gaming industry.
The pullback on the hiring process could impact the business, but CEO Jensen Huang says that he's aware of the sluggish pace in the gaming market right now.
Nvidia to Slow Down Hiring in 2022
As confirmed by Protocol in its report, Nvidia is about to slow down hiring later this year. Previously, many tech companies such as Meta, Coinbase, Snap, and Salesforce have announced the same decision on their end.
The announcement also coincides with the firm's statement about the recent earnings report. It should be noted that the chipmaker expects some changes in the sales of its products, particularly the GPUs.
According to Nvidia, the GPU sales for computers and other gaming consoles could potentially drop in this quarter.
Per Huang, the CEO of the company, it seems that the video gaming market is slowing down following the 7% plunge in their shares, Reuters reported.
As for its revenue, the company has steadily improved after reaching more than 46% over the past year. In 2021, it managed to hit over $8 billion in revenue.
Nvidia said that it's preparing to release the next-gen products in the line. The possible release for the "largest wave" of these items will most likely arrive in Q2 2022.
Lower Revenue Forecast
Although it posted an impressive revenue record in the past, the company is not relaxed about the upcoming sales for the next quarter. Engadget reports that the chipmaker has decided to slow down the internal hiring for future employees.
Additionally, the next quarter could yield lower revenue for the company. This means that Nvidia will raise its standards even more for deserving applicants.
"We were told that leadership wants to take a pause to onboard the thousands of new hires we've recently made," Nvidia said in a Slack message.
Furthermore, the company added that it is slowing down hiring to focus on its current staff amid the looming inflation across the country.
Aside from the ongoing chip shortage hitting the global market, several tech companies have been affected by the surging lockdowns. The recent lockdown continues in China, where the coronavirus originated.
The Ukraine issue is also why tech firms have recorded a decline in product sales.
For this part, Nvidia believes that it could endure this economic drawback. The company says that the GPU will still drive a high demand regardless of the circumstances.
In other news, Sony's PlayStation Studios looks forward to expanding its service to the mobile platform. The expected arrival of the live service games will be in 2025, per Tech Times.
Read Also : Asus, Nvidia Introduce the World's First 500Hz G-Sync Gaming Display During Computex 2022
This article is owned by Tech Times
Written by Joseph Henry
