Feeds

Chips are down at Broadcom: Thousands of workers laid off

Cellphone baseband device biz shuttered

Providing a secure and efficient Helpdesk

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.