After recent acquisition, Broadcom lays off 1,100 employees
Broadcom has laid off 1,100 employees over the course of the first quarter and may reduce headcount further based on its internal evaluations, according to a filing it lodged with the Securities and Exchange Commission today.
The chipmaker recently closed on its $5.5 billion acquisition of Brocade, a data and storage technology firm, and is in the middle of streamlining operations. Broadcom has stacked up $143 million in restructuring costs, most of which coming in the form of severance payments. The majority of pay packets will be sent out in the third quarter.
The US-based chipmaker recently reincorporated from Singapore, a move done as part of its efforts to acquire competitor Qualcomm earlier this year. President Donald Trump ordered that Broadcom drop its bid and the company complied.
Broadcom CEO Hock Tan is known to be a profit driver, driving efficiencies wherever possible. However, his company tried to curry favor with regulators looking over the deal by committing money to research and devleopment.
Washington politicians were worried that if Qualcomm had been bought, Tan would institute drastic cuts and allow Chinese competitors like Huawei and ZTE, both characterized as captured enterprises of the Chinese authority, to proliferate their networking offerings to carriers — something intelligence officials are sensitive to as the 5G grid is being rolled out.