Feeds

Chips are down at Broadcom: Thousands of workers laid off

Cellphone baseband device biz shuttered

Intelligent flash storage arrays

Broadcom is exiting the cellular baseband business, a decision that's has bitten hard, with the company announcing layoffs of around 2,500 employees – around 20 per cent of its total workforce – worldwide.

Its latest SEC filing shows the company turned in a loss of $US1 million for the quarter, a collapse from the previous quarter's $165 million in profit but better than 2013 Q2's $251 million loss.

Following through on its threat to quit the business means the company will take a $417 million restructuring charge, it says, of which $US150 million will be in this quarter.

Of the 2,500 to be laid off, 2,250 are directly in that business, with another 250 in sales, admin and “other corporate functions”. Eighteen locations worldwide will be sold or consolidated into other sites, and an unannounced number of contractors will also be pink-slipped.

The company recorded $130 million of non-cash charges covering long-life assets, and $34 million in inventory charges to the end of the quarter, as well as $104 million in property and equipment write-downs.

Broadcom's predicting a rise in WiFi and Bluetooth chip sales in the coming quarter, but CEO Scott McGregor said the baseband cellular division closure will mean total volumes will fall.

McGregor also expects payoffs from the company's moves in the 25 Gbps Ethernet data centre standardisation, and a strong position in the HVEC codec market for Ultra HDTV. Other bright spots, the company hopes, will be automotive and Internet of Things chips. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.