Analyst warns Nvidia faces staff churn after Huang exit

Jensen Huang's sudden resignation has left Nvidia's workforce shaken. The company's staff are known for their loyalty, and few of them expected the co-founder to leave. Patrick Moorhead, CEO and chief analyst at Moor Insights and Strategy, told Bloomberg that Nvidia could face months of employee churn while uncertainty over its CEO search continues.bloomberg.com

Nvidia said on Thursday, November 12, that Huang had resigned as president, CEO and board member, effective immediately. Chief Financial Officer Colette Kress will serve as interim CEO, and the board will consider internal and external candidates for the permanent job, according to the company's announcement. Nvidia also named Harvey Jones, a former Synopsys ↗ 0.12% CEO, as its first-ever board chair, Reuters reported.sec.gov+1

A loyal workforce caught off guard

Rank-and-file employees first carried on with business as usual when reports of Huang's affair surfaced earlier this week. They trusted the board to investigate, but few thought Huang would actually leave, according to current and former employees who spoke to WIRED. Workers describe the company's loyal culture as having "green in your blood," and Nvidia's turnover is reportedly among the lowest in tech. "In just three days we went from superhero cape to 'Oops, I forgot my pants,' and nobody's quite sure how to swallow that," one employee told the outlet.wired.com

Nvidia's FY2025 annual filing reported a turnover rate of just 2.5%, and the company says its stock-based compensation is designed to keep employees by vesting shares over time, Firstpost noted. Those "golden handcuffs" may now matter less. Many long-tenured staff have already built large fortunes, and much of that wealth is tied to a share price that has fallen more than 30% from its early-October peak, according to the same report.firstpost.com

The scandal behind the exit

Huang stepped down after an inquiry into reports that he had an affair with a woman U.S. intelligence agencies believe was spying for China, and another with an executive who reported to him, The New York Times reported. The company gave no reason for his departure, AFP said. China has called the spying allegations "groundless speculation," according to the Council on Foreign Relations. U.S. lawmakers said Huang has agreed to appear before Congress, the BBC reported.afp.com+3

Nvidia shares fell more than 12% in early trading on Thursday, Reuters reported.reuters.com

Pressing ahead without Huang

Inside the company, meetings and projects are moving forward with "what's left of Huang's vision," and Nvidia is set to report quarterly earnings next week, WIRED reported. Huang ran a flat structure with around 60 direct reports and a demanding culture, so employees now face questions about whether stock rewards and work expectations will change under new leadership, Firstpost wrote.wired.com+1

Some in Silicon Valley are worried about more than staffing. One AI startup chief warned WIRED that a "new professional CEO" might stop Nvidia's backing of AI startups, and said that "systemic risk for the AI trade and AI bubble increases substantially."wired.com