After Avago merger, Broadcom to axe 1,900 jobs worldwideApple supplier Broadcom Ltd., n´ee Broadcom, has plans to cut 1,900 jobs globally in a restructuring effort that comes one year after the chipmaker was acquired by competitor Avago for $37 billion.
As reported by Reuters, the company said it expects to shoulder some $650 million in charges through 2018 as a direct result of the workforce winnowing process.
Avago announced intent to purchase Broadcom for $37 billion last May with plans to pay out $17 billion in cash and 140 million Avago shares worth $20 billion. The deal was completed on Feb 1.
For the three-month period ending in January, Broadcom beat analyst estimates with adjusted revenues of $1.78 billion, today's report said. The better-than-expected showing net the company $377 million, down from $429 million notched during the same time last year.
The Avago-Broadcom merger, characterized as the "successor" to Avago Technologies, combined two major chipmaking businesses into a single operating entity. Broadcom supplies wireless communication components and other hardware technologies to a variety of tech industry players. Apple, for example, uses Broadcom's wireless chipsets across its product lines, the most important being iPhone.
Looking ahead, analysts anticipate increased competition for iPhone parts orders from Intel, Qualcomm and potentially Apple's in-house baseband tech team.