Graphics chip developer Nvidia plans to lay off 6.5 percent of its workforce, with around 360 people worldwide expected to lose their jobs by the end of October.

In a statement, Nvidia said the layoffs will allow it to continue to invest in strategic growth areas, including its CUDA (Computer Unified Device Architecture) parallel computing technology and its Tegra mobile single-chip computer. The move will also help the company become more competitive and boost its financial performance, it said.

The layoffs come about a month after Nvidia took a one-time charge of $196m against its second-quarter revenue to cover the cost of replacing bad chips used in HP and Dell laptops.

Nvidia also faces a lawsuit that was filed in California alleging that it hid a series of defects in its chips that caused the chips to fail.

The company did not indicate that the layoffs were related to the recent costs associated with replacing the bad chips.