The slowing economy continues to weigh on the tech industry, as NVIDIA has become one of the first chipmakers to announce a reduction in new hiring, according to a memo issued by the company. The New Indian Express and endorsed by Protocol. That takes its toll on its latest earnings release, when it said it expected GPU sales for consoles and PCs to decline in the current quarter. “Overall, the gaming market is slowing down,” said CEO Jensen Huang Reuters.
NVIDIA actually had a solid last quarter, with revenue up 46% year over year to $8.29 billion. It also notes that it is “preparing for the biggest wave of new products in our history” with new GPU processors, CPUs, DPUs and robots coming online in the second half of the year.
However, it forecast lower-than-market revenue for the next quarter. And internally, the company appears to be bracing for a downturn. “Onsite interviews … continue, but we will raise our standards to the highest,” it said in a Slack announcement. “We were informed that management wanted to pause to resume the thousands of new hires we recently made.” The company also said Protocol that it is slowing hiring “to focus our budget on taking care of current employees as inflation persists.
NVIDIA will join a number of technology companies, including Lyft, Uber and Snap, in announcing the hiring slowdown. Tech companies have been particularly hard hit by the economic hardships caused by the COVID lockdown in China and the war in Ukraine. NVIDIA, however, has expected ahead of weather events as continued strong demand in the GPU market has held High prices and short supply.
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