@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.
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.
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.
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 ....
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!
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.