U.S. chipmaker, NVIDIA Corporation (NASDAQ:NVDA) shares drop in pre trading session on Thursday after the company recently announced that it is stopping its operations in Russia and providing staff the option of continuing their careers in other countries.
According to an emailed statement, after earlier stopping shipments to the nation, we kept our office open to support our staff and their families. We can no longer work successfully there due to recent changes.
Nvidia had previously ceased all product shipments to Russia in March due to the country’s invasion of Ukraine, but the business stated it had maintained an office presence in Russia to help its local workers and their families.
However, in a statement made on Monday, the GPU powerhouse said it was now stopping all activity and closing its offices in Russia, citing “recent changes,” adding that “all workers will be offered the option of continuing their careers in other countries.”
It is estimated that Nvidia had at least 300 workers working for the firm in Russia prior to the invasion, and that at least 200 individuals had gone before the shutdown was announced.
Severance compensation is reported to be offered to employees who do not want or are unable to relocate to a different place.
Flights from Moscow and St. Petersburg sold out for days after Russia began recruiting additional troops on September 22, and airspace restrictions and a “dramatic” decline in foreign travel choices meant airfares for those leaving the country surged, according to air traffic news site FlightRadar. Airspace in the EU remains prohibited to departing planes.
Back in May, Nvidia blamed the Ukraine conflict for affecting its first-quarter revenue estimates for 2022. CFO Colette Kress stated at the time that the company’s second-quarter guidance included an expected $500 million drop linked to Russia and the COVID lockdowns in China.
The US government barred AMD and Nvidia from exporting certain equipment, such as GPUs needed to accelerate AI and machine learning, to either Russia or China last month.
