Marvell To Restructure Its Business - Includes Layoffs

[Julio Urquidi]

In an effort to rebuild its focus on R&D, Marvell announced that it is going to implement changes, including layoffs, that would drop its annual operating expenses from $1.08 billion to at least $820 million.

The company said that it would discontinue, consolidate, and streamline specific R&D programs, which would include eliminating 900 jobs worldwide. Marvell would also divest non-strategic business in order to cut additional operating expenses amounting to $60 million.

"These are difficult but necessary changes. I'm confident these actions will yield a greater return on our R&D investments, deliver the innovation our customers’ need, and generate the value our shareholders expect." Matt Murphy, Marvell CEO and President, said.

These changes are expected to be fully implemented by the end of October 2017.

 

[sfx2000]

Wonder if this is in response to the industry M&A activity - over the past couple of years..

1) Broadcom - Merge with Avago - and then Broadcom assets spun off to Cypress
2) NXP and Freescale
3) Qualcomm and NXP
4) Renasas and Intersil
5) Mediatek and Ralink
6) Softbank and ARM

This is just a few examples - but some of these have, or will, change the market in big ways... Marvell is likely responding to the shift..

I suspect we'll see similar consolidation over in the China chip market in the near future...

 

[ColinTaylor]

Having to pay Carnegie Mellon University $750,000,000 probably didn't help.