Nvidia CEO Jensen Huang Gives Contrary Advice To CEOs On Firing People

The age of artificial intelligence (AI) is here, impacting business operations across various industries. Companies are rapidly integrating AI into their daily functions, while employees at all levels are quickly learning AI-related skills to stay competitive. Among the companies riding the AI wave, Nvidia stands out. Their recent second-quarter earnings more than doubled from a year ago, surpassing Wall Street estimates and further entrenching them as a dominant force in the tech sector. From humble beginnings—cleaning bathrooms—to leading one of the world’s most valuable companies, Nvidia’s CEO Jensen Huang’s leadership approach is as bold as his company’s success.

In a 60 Minutes interview, Huang was described as “demanding, a perfectionist, and not easy to work for.” He agreed: “If you want to do extraordinary things, it shouldn’t be easy.” Currently valued at a little over $2.5 trillion, Nvidia ranks among the top five most valuable companies globally. According to a June poll of over 3,000 Nvidia employees, out of around 30,000, 76% are millionaires, and one in three has a net worth exceeding $20 million. Despite the company’s intense “pressure-cooker” environment, Huang’s leadership style defies expectations. Contrary to assumptions that a demanding CEO would quickly fire employees, Huang takes a more nuanced approach. In a fireside chat with Stripe CEO Patrick Collison, Huang revealed that he’s slow to fire team members and prefers to “torture them into greatness.”

This counterintuitive strategy offers key lessons for CEOs. Retaining employees and instead building them up provides two benefits for leaders and the overall organization.

Improved Loyalty

While compensation remains an essential piece of the puzzle, salary alone isn’t enough to engage today’s top performers. As Millennials and Gen Z become the dominant segments in the labor market, they prioritize work-life integration over strict work-life separation where salary is the focal point. They also value mentorship and coaching more than previous generations, such as Gen X and Baby Boomers. Leaders can forge stronger loyalty by investing in the personal growth of their workforce through mentorship and coaching.

Team members who feel supported and valued are more likely to stay with the company, thus reducing turnover and other human capital expenses and bolstering the company’s brand and culture. This investment in people leads to higher engagement, which extends beyond the organization’s confines and positively impacts customer interactions. That said, rather than relying on perks to “buy” loyalty, companies should focus on gathering and acting on employee feedback, recognizing achievements, and providing greater autonomy in decision-making. When individuals are empowered to take creative risks without fear of repercussions, loyalty and better performance naturally follow.

Improved Chemistry and Performance

In sports, the most talented team doesn’t always win the championship—it’s the team with the best chemistry. The same is true for business. Constantly replacing employees drains talent and, more importantly, weakens culture, stagnates performance, and impacts revenue as time is lost training new hires and rebuilding critical team dynamics. Instead, leaders can show patience with team members who display potential and work to unlock it through coaching and development.

A cohesive, long-standing team builds trust, loyalty, and alignment with the organization’s mission. When team members are truly invested in the company’s goals, their commitment goes beyond just earning a paycheck—they become mission-driven contributors. A unified, mission-driven team will consistently outperform a group of mercenaries with separate agendas.

The common adage “hire slow, fire fast” has been a staple of business culture. But in some cases, it’s worth reconsidering. Hiring and firing slowly, particularly when employees show potential but need guidance, can lead to extraordinary results. By mentoring, coaching, leading by example, and, yes, “torturing” employees into greatness, leaders can create a recipe for building high-performing teams that set their organizations apart from the competition.