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NVIDIA CEO Jensen Huang on why he does not fire people: "I rather improve you than give up on you... I don't like giving up on people because I think they could improve. And it's tongue in cheek but people know that I'd rather torture them into greatness [than give up on them]" - Jensen Huang Unsurprisingly, Nvidia's market cap per employee is around $100 million. Not sure any other public market company will ever be able to beat it. Great company coupled with great leadership does wonders. P.S. for more interesting stuff, check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.
Steve Jobs, on the other hand, was able to fire people in the elevator. Yet, AAPL and NVDA market caps are comparable. Are you sure there is a correlation between the company's market cap and its boss' way of treating people, Linas?
My cynical bet? Let's ask him again in 10y or 20y after a couple of market down-cycles when growth is finally stalling, profits are vanishing and investors are unhappy. As with Google, Meta, and so many other tech behemoths before, he'll eventually be forced to revisit his employee strategy. Right now Jensen Huang is basking in a glorious situation of monopoly on AI chips that are in incredibly high demand. Let's not cargo cult Nvidia today - it's a success 30y in the making! Back in 2008, he had a very different take on firing employees according to Forbes, https://www.forbes.com/2008/09/18/nvidia-chips-layoff-tech-enter-cx_bc_0918nvidia.html Nvidia said late Thursday afternoon that it will eliminate roughly 360 jobs, or 6.5% of the company's workforce. In a statement, Nvidia Chief Executive Jen-Hsun Huang described the cuts as "difficult, but necessary."
I've never been quick to fire anyone. Throughout my career, I've managed around 500 people directly, and I've only had to let go of three individuals, and that was due to being insulted. The true path to excellence lies in motivating your team every single day to become their best. To achieve this, it's important to lead by example, working alongside your team and tackling the most challenging technical projects with them directly on the front lines. The first person you need to be demanding with is yourself; only then can you hold others to the same standard.
Nvidia is riding the AI wave..Imagine the same set of people in another industry …would the market cap be the same?
Sounds nice but to be pragmatic: Recent years success doesn’t really put a lot of pressure in firing people off and creates a lot of capacity to give people second chances. From where he is standing being patient is easier than normal. Let’s see how he keeps that approach on a downturn.(without hoping for one of course 😂)
Linas Beliūnas I don't buy it. Let's see if he has the same air when #s /results change. NVDA has been a good long here, my friend - esp on the build position trend/volatility strategy....so we're "with" him. But what do you think he'd say if #s change or market(s) changes and IF the stock prints short side time forward? As I said, he's not selling but I'm not buying that "let's all hold hands and sing kumbaya, we love you employees" slant....despite appreciating his results w NVDA up to now and the lovely long it's been from '23 pop/breakout. Stay good. Cheers.
The guy runs a public company, he pretty much has no choice in what to tell the world.
We can always work on people, before firing them! I used to find out what could move better a low performer. Most of the time, they were unpleased to what they were doing, unfit! Then we used to work together to findout a suitable task, another challenge, or even an interdepartmental move or exchange. There is always another way to treat people, much better than as disposable assets! Trained and skilled people are rare and scarce to find! Find what can move them up is the real job of leadership positions!
Founder & CEO @ Zen Media | Keynote Speaker | Henry Crown Fellow (Aspen Institute)
2mo1) Nvidia’s recent rise has a lot more to do with timing and right place/right time. It is a good company AND they got lucky. This has nothing to do with the CEO not giving up on people. 2) For a while, NVIDIA practiced stack ranking…along with Amazon and Microsoft. Which means they fired the lowest 10% of performers every year. Microsoft just stopped the practice in 2023. Leadership matters but I’m always wary of these CEOs who extol the virtues of their own leadership.