SAN JOSE, Calif. — Broadcom will lay off about 2,500 employees as part of a decision on June 2 to exit the cellular baseband business for which it could not find a buyer. The news came in a call with financial analysts in which the company essentially reported neither profits nor revenue growth for its latest quarter.
Broadcom will take a $417 million charge, about $150 million of it this quarter, for the restructuring, which will include closing or consolidating 18 offices. “The decision to exit the cellular baseband business puts Broadcom on a path to being a stronger company,” said Broadcom's chief executive Scott McGregor.
The decision underscores the significance of the smartphone market and how it is consolidating into the hands of fewer, larger system and chip makers. The layoffs represent about 20% of Broadcom's 12,400 employees.
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— Rick Merritt is the Silicon Valley Bureau Chief of EE Times.