Broadcom said it will slash 1,900 jobs around the world in the wake of its $37 billion acquisition by Avago Technologies.
The company, which supplies chips to Apple and other phone vendors, said it expects to take charges of roughly $650 million related to the layoffs through 2018. Avago closed on the purchase of Broadcom last month, and the combined companies emerged as Broadcom Ltd.
The new company said the legacy Avago business posted a profit of $377 million for the quarter ending Jan. 31, up from $351 million during the same period a year prior. The former Broadcom Corp. generated revenue of $2.1 billion for the quarter ending Dec. 31, reporting total revenue of $8.39 billion for 2015.
Shares of Broadcom were up 8 percent in extended trading yesterday following the earnings report and news of the job cuts.
"The completion of Avago's acquisition of Broadcom Corporation has created the world's leading diversified communications semiconductor company and marks another major milestone for us," said Hock Tan, CEO of Broadcom Limited, in prepared remarks. "The combined company presents significant opportunities to further increase shareholder returns, with a much larger scale and increased exposure within our attractive end markets that we address through a number of category-leading product franchises."
- see this Reuters report
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