Broadcom to cut 1,150 jobs in restructuring

The layoffs result partly from Broadcom's acquisition of LTE chip assets from Renesas Electronics

Communications chip maker Broadcom is cutting approximately 1,150 jobs, nearly one-tenth of its workforce, as part of a global restructuring.

The company announced the cuts Tuesday as it reported third-quarter revenue that was nearly flat from last year's third quarter, at US$2.15 billion. That was up just 0.8 percent from $2.13 billion a year earlier. The company also posted net income of $316 million, compared with a loss of $251 million in last year's third quarter.

Broadcom said the restructuring, which its board approved on Sept. 25, is aimed at cutting costs as well as better focusing the company's spending on key initiatives. The cost-cutting also includes lease terminations, the company said.

The layoffs will include about 350 employees that Broadcom took on through its acquisition of LTE chip technology from Renesas Electronics, which was completed on Oct. 1. As many as 425 Broadcom workers will also be cut because their jobs became redundant after Renesas was absorbed into the company. But the layoffs will also include up to 375 employees to be cut from across all of Broadcom's regions and business functions, according to a U.S. Securities and Exchange Commission filing by the company. That resulted from a regular review of the company's resource allocation, President and CEO Scott McGregor said on a conference call following the financial report.

Also on the call, McGregor said the company expected short-term challenges including softness in its wireless connectivity and broadband access businesses.

Broadcom makes silicon for both wired and wireless communications, including smartphone and tablet chips as well as parts for set-top boxes, enterprise and carrier infrastructure, and other systems. It has approximately 11,750 employees.

In early September, the company announced it would pay an estimated $162 million for LTE assets from Renesas that it would ship starting early next year. Among other things, the deal will allow Broadcom to ship its first multiband, carrier-validated LTE system-on-a-chip product for mobile devices. It also acquired intellectual property for emerging LTE technologies including VoLTE (voice over LTE) and carrier aggregation, which lets operators combine spectrum bands to boost capacity.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobilesmartphonesbusiness issuesprocessorsfinancial resultsconsumer electronicsbroadcomlayoffsComponents

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?