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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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krisi
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Re: Tough choices, murky history
krisi   7/25/2014 11:55:15 AM
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I see, I don't follow this market closely...if Broadcome and Qualcomm don't do that well who is?...players in China? companies that refuse to pay royalties?

docdivakar
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Re: Tough choices, murky history
docdivakar   7/25/2014 10:42:58 AM
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@kris: it looks to me that Broadcom may have made the right decision, considering the tough market environment in the mobile business. Qualcomm's stock took a beating yesterday, mostly because it could not collect its royalties to the fullest in China and cited softness for the rest of the year.

Broadcom has a solid position in the datacenter infrastructure market and more attention should go there in my opinion.

MP Divakar

Mr. Brightside
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Scott McGregor must go
Mr. Brightside   7/25/2014 12:43:50 AM
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For nearly a decade this CEO has been drawing one of the highest salaries in the Fortune 500 but what is there to show for it? Billions in squandered income, a stock price that hasn't budged since he took office, one failed acquisition after another. And now the coup de grace: complete dissolution of his prized Mobile business unit without reaping one red cent for years of expensive R&D, and 2500 engineers on the street.

The Board should be hanging their heads in shame. Throw the bums out, every last one of them.

krisi
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Re: Tough choices, murky history
krisi   7/24/2014 7:13:03 PM
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I agree...this doesn't look like a bright start to new businesses like IoT...they might have to exit other markets too before they become stable

krisi
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Re: Broadcom Cuts 2,500 jobs
krisi   7/24/2014 7:11:42 PM
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is this legal? (not tracking vacation time)

hb11us
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Re: Tough choices, murky history
hb11us   7/24/2014 2:31:12 PM
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Next thing we hear that BroadComm exited the WiFi buziness (All basband supplier are working hard to package their own design with thier own WiFi solutions).

This will be their worst decision ever, driven mostly by Wall Street banker !!!

AZskibum
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Re: Tough choices, murky history
AZskibum   7/24/2014 1:31:07 PM
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A painful but smart decision. As you stated, if you're not in Samsung or Apple, the rest of the sockets out there don't add up to enough to make a viable baseband business. I hope the affected engineers land on their feet soon.

scud
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Re: Tough choices, murky history
scud   7/24/2014 12:56:50 PM
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Before acquiring Renesas, there were large layoffs on both sides - Broadcom as well as Renesas - to the tune of 30 to 40%. The remaining team was legacy Broadcom and the acquired Renesas. Broadcom decided to sell its modem business around 8 months after acquiring Renesas. In those 8 months, there were a couple of phone launches (carrying on Renesas legacy) with a big player, and a little earning (but not a loss). That was enough to close it. Probably a grocery store takes more than 8 months to recover initial investments ....

pseudoid
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Broadcom has got its plate full
pseudoid   7/24/2014 11:37:30 AM
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This RIF was announced early in June as the report indicates but a 20% chunck must be a sizable number of very specialized US engineers being impacted.

The report also indicates that they are planning on consolidating 18 (international) locations and currently they are negotiating a few campus options for this effort.  It is intriguing that the report is sourced from San Jose, CA as I had thought that their HQ' were in SoCal  (Orange County, CA).

My understanding is that their profits were riding in the coattails of Apple while ignoring whole Android market.  I assume Qualcomm is doing a better job, especially now that MediaTek is thinking of opening up a site in SanDiego region to better compete.

Since BroadCom is getting out of the baseband (BaseCom?) business, they plan to re-direct more of their tech-energy into the InternetOfThings sector!

cd2012
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Re: Broadcom Cuts 2,500 jobs
cd2012   7/24/2014 7:27:08 AM
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hi RM,

When I worked there (Irvine) and they changed the policy in 2011, the company paid out the remaining vacation owed to employees, as they are legally required to do.  As far as I know, vacation is currently untracked, which means no payout when you quit or are laid off.


Netflix started this policy: http://www.slideshare.net/reed2001/culture-1798664, p. 66.

 

 

 

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