@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.
Replay available now: A handful of emerging network technologies are competing to be the preferred wide-area connection for the Internet of Things. All claim lower costs and power use than cellular but none have wide deployment yet. Listen in as proponents of leading contenders make their case to be the metro or national IoT network of the future. Rick Merritt, EE Times Silicon Valley Bureau Chief, moderators this discussion. Join in and ask his guests questions.