Broadcom axed 1100 employees following Brocade merger
Broadcom says that roughly 1,100 employees have been let go due to restructuring efforts following the acquisition of Brocade.
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According to a SEC regulatory filing, the chip giant enforced the layoffs in the first fiscal quarter of 2018.
Broadcom says that restructuring and "cost reduction activities" made the termination of 1,100 members of staff necessary. The layoffs took place across all of the firm's business units.
However, more redundancies may be on the horizon.
"Management is in the process of further evaluating our resources and business needs and may eliminate additional positions, which would result in additional restructuring costs," Broadcom says.
The company added that it had incurred $143 million in restructuring costs in Q1 2018, primarily related to the employee terminations.
Broadcom agreed to acquire Brocade, a networking hardware, software, and Fibre Channel Storage Area Network (FC SAN) services provider in 2016 for $5.5 billion. The deal was closed in November 2017.
"We acquired Brocade to enhance our position as a provider of enterprise storage connectivity solutions, broaden our portfolio for enterprise storage, and to increase our ability to address the evolving needs of our original equipment manufacturer, or OEM, customers," the company added.
In April, Broadcom launched a stock buyback program in order to repurchase up to $12 billion of company shares. So far, Broadcom has repurchased and retired roughly 1.5 million shares of common stock at a weighted average of $230.50.
Last week, the company its reported Q2 financial results, including net income of $3.73 billion, or $8.33 a share, on revenue of $5.01 billion. Non-GAAP earnings for the second quarter were $4.88 a share.