In November, Broadcom’s Broadcom completed the acquisition of Brocade Brocade for US$5.5 billion. According to the latest Reuters news, the two companies have now completed the merger, but due to the high cost of the combined company’s expenses, Broadcom announced a reduction of approximately 1,100 employees to cut costs.
In its submission to the regulatory authorities, Broadcom said that it acquired Brocade on November 17 last year and began cutting costs associated with the acquisition of Brocade in the first quarter of fiscal year 2018. In the first quarter of fiscal year 2018 and second During the quarter, Broadcom confirmed that in the process of restructuring with Brocade, there were US$35 million and US$143 million in expenditure, respectively.
It is understood that these two costs are mainly related to layoffs. As of May 6, the second quarter of fiscal year 2018, a total of 1,100 employees of Broadcom’s global business units and functional departments were eliminated from integration with Brocade. Therefore, the above The two fees are mainly used for compensation for layoffs and retired employees.
In addition, Broadcom also stated that management will continue to evaluate resources and business, and may continue to reduce staff during the reorganization with Brocade.
Currently, Broadcom is a leading global wireline and wireless communications semiconductor company headquartered in the United States. Its products enable the delivery of voice, data, and multimedia to homes, offices, and mobile environments as well as in these environments. Broadcom is a digital computing and computing device for digital computing. Manufacturers of broadband access products and mobile devices provide the industry's most extensive, state-of-the-art system-on-chip and software solutions.