I’ve got a Shack scoop for you guys. After hearing from various people that 3dfx went through some layoffs on Monday, I decided to dig a bit and find out what was up.

So I finally got the scoop. There was a 20% Reduction In Force at 3dfx on Monday (right after their fiscal year ended, likely so they could delay in reporting it). 5% of the 20% were pure layoffs, and the remaining 15% was spun off (or will spin off) into their own company. This 15% was the advanced multimedia group of former STB. I don’t know the new company’s name, but this news is very good for 3dfx stock-wise. This should help their fiscal Q1 and spinning off the advanced multimedia group shows that they’re willing to trim down the core company of people that really aren’t needed since the STB merger. Here is a link to the follow-up for people coming to this news item directly.