Broadcom cuts 1,100 jobs post Brocade merger
- 15 June, 2018 08:30
Broadcom has laid off about 1,100 employees across its businesses to cut costs after its merger with Brocade Communications Systems.
The chipmaker completed its US$5.5 billion acquisition of network gear maker Brocade in November.
Broadcom is further evaluating its resources and may terminate additional positions, it said in a regulatory filing.
According to the vendor, the business had incurred US$143 million in restructuring charges, primarily employee termination costs, during the first two quarters of its fiscal 2018.
The company is expected to pay majority of its employee termination costs in the third quarter.
Broadcom closed its acquisition of Brocade more than six months ago, giving the vendor a larger share of the data centre products market in the process.
California-based Brocade makes networking switches, software and storage products.
With this deal, Broadcom aims to grab more data centre products market share by using Brocade's fibre channel switches that speed up data transfer between servers and storage devices - it will also help the chipmaker dig deeper into the connected devices and cars market.
With local implications at this stage unclear, the announcement comes less than a month after Jason Baden exited his role as country manager of Brocade across Australia and New Zealand, taking up the leadership role of F5 Networks locally.
Sources close to ARN revealed that Baden replaced Rob Malkin in the role, who vacated his position after almost two years.
Following the change, Baden is now be tasked with leading the vendor’s operations on both sides of the Tasman, leveraging more than 15 years of experience across IT and telecommunications.
(Reporting by Uday Sampath in Bengaluru; Editing by Maju Samuel)