Marvell set for job cuts on mobile restructure

Marvell set for job cuts on mobile restructure

25 SEP 2015

Semiconductor company Marvell Technology Group is set for job losses as it “significantly downsizes” its mobile platform organisation.

In a statement, the company said the move is designed to “focus the mobile product line on anticipated more profitability opportunities and right-size its expenses in line with corporate targets”.

It will instead focus on opportunities in IoT, automotive and networking.

The move will result in an approximately 17 per cent reduction in global headcount at the company, with costs in the $100 million to $130 million range. In addition to employee-related costs, this includes facilities, assets and inventory writedowns.

The company did not state how many employees it has, with its website stating “more than 7,000”.

In August, Marvell launched a 64-bit quadcore LTE platform which it said offered “leading security and advanced communications features for mass deployment for global operators”.

Customer wins this year include a low-cost LTE device for China Unicom, and Samsung’s Galaxy J1 mass-market LTE smartphone.

The company is also a partner in Google’s Project Ara modular smartphone effort.

Earlier this month, Marvell revealed it is conducting an investigation into “certain accounting and internal control matters”, related to revenue recognition in the second quarter of fiscal 2016 and “whether senior management’s operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment”.

But this was not specifically related to its mobile unit, instead focusing on demand for hard disks due to the slowing global PC market.

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