- Sep 23, 2021
Broadcom Inc. the chipmaker company, had laid off its employees in a huge number and this is probably the biggest the company has ever seen. The company in a statement said that it had laid off about 1,100 employees across its business. This decision was made simply to cut costs after its merger with Brocade Communications Systems. Broadcom has also said that they may also lay off more employees. Broadcom completed its $5.5 billion acquisition of network gear maker Brocade in November.
Broadcom said in a regulatory filing that they were also evaluating its resources and this may, consequently, lead to termination of additional positions. “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,” asserts the 10-Q regulatory filing. Broadcom previously in restructuring charges had incurred $143 million primarily in employee termination costs during the first two quarters of its fiscal 2018.
Most of the costs will be taken in Q3. The layoff mainly follows its $5.5 billion acquisition of Brocade in November. But the company is expected to pay a majority of its employee termination costs in the third quarter. Although they had started implementing their cost reduction activities which were associated with the Broadcom/Avago merger, they failed from not executing the worst case scenario which was the large-numbered layoffs.
The restructuring costs of $14 million and $45 million for the two quarters ended on May 6 and the $22 million and $64 million for the quarter and two quarters ended on April 30, 2017, respectively.