SEMICONDUCTOR OUTFIT Broadcom has confirmed that it axed 1,110 employees following its £4.6bn takeover of Brocade.
According to an SEC regulatory filing, the firm made the sweeping layoffs in the first quarter of 2018. Broadcom said that the layoffs were made as part of “cost reduction activities associated with the Brocade merger”, noting that employees were let go “across all business and functional areas on a global basis.”
The company added that it had incurred $143m in restructuring costs in Q1 2018 primarily related to the employee terminations, but said it will pay the majority of its employee termination costs in the third quarter.
More redundancies could be on the horizon, too, with the company noting that: “Management is in the process of further evaluating our resources and business needs and may eliminate additional positions, which would result in additional restructuring costs.”
Broadcom acquired Brocade, a company that specialises in fibre-channel storage area network switching, in an all-cash deal back in November 2016 in a bid to bolster its presence in the storage hardware sector, particularly in the storage area of networking technology.
“We acquired Brocade to enhance our position as a provider of enterprise storage connectivity solutions, broaden our portfolio for enterprise storage, and to increase our ability to address the evolving needs of our original equipment manufacturer, or OEM, customers,” the company said in this week’s SEC filing.
Last year, the firm also attempted a takeover of Qualcomm, making an initial offer to buy the firm for $70 per share, before increasing this to $82 per share after but Qualcomm dismissed the firm’s opening bid as a gross under-valuation of the company.
Qualcomm, which pushed back on the deal, also argued that such a deal “has an unacceptably high level of risk, and therefore is not in the best interests of Qualcomm stockholders.”
In March of this year, the deal was blocked by US reality TV star Donald Trump, who claimed “credible evidence” showed that the proposed deal, which would have been the largest tech acquisition to date, “threatened to impair the national security of the US”. µ
Source : Inquirer