A few days ago we told you about several cutbacks at 3dfx. The company let go an unspecified number of workers from its California and Texas offices due to lower-than-expected quarterly returns. This afternoon, 3dfx issued a press release stating that it had cut about 20 percent of its total workforce as part of a "company-wide designed to streamline business practices, processes and systems with the goal of aligning expenses with revenues."

　　Additionally, 3dfx will also spin off Specialized Technology Group, previously a subsidiary of the company, into a completely separate entity. 3dfx anticipates the completion of this process in around 90 days.

　　"These are the first steps towards our number one goal of returning to profitability as a company," said 3dfx's recently appointed president and CEO Dr. Alex Leupp. "Our revised focus on core competencies and productivity, coupled with a reduction in expenses and operational costs, positively positions us for our new fiscal year."

　　3dfx is currently wrapping up development on its latest 3D graphics processor, the VSA-100, and is expected to start producing Voodoo4 and Voodoo5 video cards toward the end of Q1 2000.