NVIDIA announced that they were cutting 360 jobs today -- about 6.5% of the company's workforce.

Unfortunately things haven't been going NVIDIA's way recently. The most pressing issue to NVIDIA's solvency seems to be reports that a great number of their GPUs were built using substandard materials -- they have already earmarked $200 million for replacing failed cards, but some people believe that this might not be enough. Additionally, NVIDIA is forced to cut profit margins on video cards in order to compete with ATI's offerings this generation.

And not to mention, besides NVIDIA the entire American economy is in recession. Negatively affecting the world's economy, the United States is currently in the middle of one of the worst financial meltdowns seen since the Great Depression. This week,  three out of five of the country's banking conglomerates have gone bankrupt, and the other two are being bought up by foreign entities. Meanwhile the government is pumping in many billions of tax dollars into the companies to prevent them from folding, in order to stave off an even larger, wide-spread domino-crash of the entire economy.  

NVIDIA CEO Jen-Hsun Huang had this to say: "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. We are taking fast action to enhance our competitive position and restore our financial performance. All of us at NVIDIA are determined to emerge from these challenges an even stronger company."