According to a report that appeared on ShugaShack earlier this morning, video-card manufacturer 3dfx has let go a significant amount of its workforce due to lower-than-expected financial results for the third fiscal quarter of 1999, in which the company lost some US$17 million. As a result, the company has let go an unspecified number of employees, and it will be spinning off one of its divisions into a separate company.

　　We spoke with 3dfx PR manager Brian Burke, and he stated that the layoffs only affected the "redundancy left over after the merger" with STB. Both the San Jose, Calif., and Richardson,Texas, offices were affected by the layoffs. In addition, the company's Specialized Technology Group, a 3dfx subsidiary that develops video applications for Wall Street businesses, will become a completely separate company. Specialized Technology Group officials told GameSpot that a press release would be issued within the coming days.

　　3dfx is currently developing its latest 3D chip, the VSA-100. According to Burke, the company has received silicon, and it is still on schedule to deliver its Voodoo4 and Voodoo5 video cards in late Q1 or early Q2. We'll keep you updated.