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Broadcom Cuts 2,500 jobs

Cellular exit drives 20% layoffs
7/22/2014 06:30 PM EDT
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elctrnx_lyf
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Re: Will Strauss lends perspective
elctrnx_lyf   7/24/2014 4:42:30 AM
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Once it becomes difficult to sell, it becomes hard to maintain the highly paid employees and the infrastructure. So going lean and concentrate on where you can win will become more and more essential.

Hare Rama
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Re: Will Strauss lends perspective
Hare Rama   7/24/2014 2:17:21 AM
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@Sheetal.Pandey

As far as India is concerned, severence package announced is good enough and is also linked to number of years of experience at Broadcom. Also there is tieup with one of the major job consulatancy firm to assist the outgoing employees.

Sheetal.Pandey
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Re: Will Strauss lends perspective
Sheetal.Pandey   7/24/2014 2:01:40 AM
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Its understod that when business doesnot do well or cost cutting is in action, employee salaries or layoffs seems to be the first option to reduce direct costs. Noone can deny that. But there should be placement assistance available whether through direct HR or placement companies or business associates. And how about the severence package, are these engineers getting good package to mage for few months...

JimMcGregor
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Re: Tough choices, murky history
JimMcGregor   7/23/2014 8:22:00 PM
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You are correct Rick, this was a bad decision from the start. And in regards to which companies will likely be downsizing, start with the companies that have had changes in management over the past year and go from there. While many of the companies will emerge stronger and more focused, it will have an impact on many throughout the industry.

rick merritt
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Re: Tough choices, murky history
rick merritt   7/23/2014 6:15:53 PM
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@Matthieu and @Junko:  Wow, I went back and looked at Junko's story and it hasn't even been a full year since Broadcom acquired Renesas Mobile!

See http://www.eetimes.com/document.asp?doc_id=1319399

 

rick merritt
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Re: Tough choices, murky history
rick merritt   7/23/2014 6:12:32 PM
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@JimMcGregor: Thanks for chiming in...who would you rank as the 4-5 most likely to have cuts this year?

junko.yoshida
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Re: Tough choices, murky history
junko.yoshida   7/23/2014 5:43:48 PM
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I think Will Strauss' comments sum it up. Broadcom, after its acquisition of Renesas Mobile's team last summer, hit the same wall the Japanese chip company ran into. When the smartphone market is dominated by two giant players (Samsung and Apple) and if you haven't won either sockets, you have NOWHERE else to go. There are no large enough customers to sustain your business. After all, that's the same problem that ST-Ericsson ran into, too.

 

Matthieu Wipliez
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Re: Tough choices, murky history
Matthieu Wipliez   7/23/2014 4:44:58 PM
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The race to ever lower costs combined with the search for maximum profits is bound to lead to this (and the poorer the company management the higher the probability).

Broadcom must have lost a ton of money in the meantime... Buying Renesas' assets only for letting people go less than 2 years later, I wonder if they even had time to design and sell one chip. My guess would be that they overestimated the profits they could make, while underestimating both the time needed and the money it would take. What was the deal with Renesas exactly? Were they forced to hire all 2,500 people?

Kinnar
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Re: Tough choices, murky history
Kinnar   7/23/2014 3:10:10 PM
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You are right but IoT and Wearable does require conventional electronic components as well as connectivity toolset which is a main product of Broadcom, so it is still there area of expertise with some alterations. 

JimMcGregor
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Re: Tough choices, murky history
JimMcGregor   7/23/2014 2:39:41 PM
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Unfortunetly, we are likely to see many more announcements like this throughout the end of the year. Growth rates in many segments is slowing and IoT and wearables are unlikley to drive significant gorwth in the short-term. Even when growth rates do pick up in these segments, the trend toward slimmer margins in consumer electronics will continue. As a result, many tech companies are re-evalauting their strategies, dropping some initiatives, and slimming down.

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