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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.