As the pandemic drags on, businesses are beginning to cut employees in order to save their bottom line. Whether through layoffs or furloughs, cutting employees salaries is an easy, if heartless, way to save money. Take another company, Magic Leap, which announced layoffs yesterday in order to "manage costs".
Nvidia is headed in another direction though. Not only will the company not be laying off any employees, it will also be offering raises to all employees for financial security. Nvidia senior vice president of Human Resources Shelly Cerio released a message from CEO Jensen Huang on LinkedIn.
"We are accelerating your raise to put some extra money in your hands. We can put tens of millions of more dollars in the hands of our families in the coming months," wrote Huang. "There is no layoff. The work we do in graphics, science, AI, and robotics is more vital to the future than ever."
The worries about a layoff came after Nvidia canceled its annual review process, prompting Huang to release this memo. He noted that Nvidia products and personnel are key to finding a vaccine or improved tests for COVID-19. The CEO also promised to match charitable contributions for six charities, with the company matching up to $2,500 and Huang himself matching dollar-for-dollar.
It's a move that supports employees during a very tough time for many Americans. It does help that Nvidia is in a much better position compared to many other companies. It's hardware is key to many, many functioning sectors of the American economy. But it's still an excellent choice for a company that could simply take the money and run.